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Virtual Fencing: What NSW farmers are learning now that it’s legal

Picture 150 cows in the one paddock, no fence in sight.

Part of the paddock had been grazed. The rest hadn't. Separated by an invisible line.

The impressive evidence witnessed first-hand at a Virtual Fencing Master Class on a farm near Cudal this month.

Hosted by the Central Tablelands Local Land Service, the event was timely with virtual fencing now a legal option, and front of mind, for many NSW cattle and dairy producers.

What Virtual Fencing Actually Does

Virtual fencing uses GPS-enabled collars to create paddock boundaries set via an app on a device, rather than boundaries defined by fencing. As cattle approach a boundary, the collar delivers an audio cue. If they continue, they’ll receive a mild sensory cue. The use of shock collars or manual electric cues is prohibited; only devices that meet strict animal welfare requirements are allowed with users required to complete supplier training and monitor their herd.

The Everyday Benefits

Speakers at the Cudal event, including host farmer James Rodgers, who's been running virtual fencing on his own property, pointed to a few benefits for farmers already using it:

  • Less time and physical effort spent moving stock and checking fences
  • Easier rotational grazing, with paddock boundaries adjusted from a phone
  • Faster location of sick or rogue animals, without having to physically search the property
  • Reduced stress of the animals from limited use of quad bikes and dogs
  • Added protection against theft, with GPS and satellite tracking identifying the exact location of stock
  • Protection of erosion-prone country

Where It Really Stands Out: Emergency and Disaster Management

According to rural financial counsellor Danielle Davenport, the everyday time, labour and cost-saving benefits aren't the strongest case for virtual fencing - it's what it can do when things go wrong.

In an emergency such as a fire, new paddock boundaries can be set remotely and stock moved to lower-risk ground within minutes, rather than driving into a hazardous area to physically move or cut fences. The GPS technology allows emergency responders to locate stock more accurately, meaning less risk to lives and a faster, more effective response for the animals involved.

Research into the 2019–20 Black Summer bushfires found that in the days after a fire, farmers often had no way to reach or contain surviving stock, with some forced to erect emergency fencing from scratch to keep animals near water. Being able to redraw a paddock boundary from a phone, instead of relying on fencing that may no longer exist, changes that picture considerably.

Flood recovery raises a similar problem. Traditional fencing is often destroyed and farmers often contend with damaged access tracks, scarce materials, and long wait times for contractors and fencing supplies - all while receiving little to no income. Locating stock via a collar app, rather than searching the property once accessible, reduces risk, and recovery time.

Benefits vs Upfront Cost

This is usually where the conversation lands, is it actually worth the money?

NSW Farmers' modelling, prepared for the parliamentary inquiry into the reforms, gives a useful comparison. For a typical 420-head beef farm needing around 15km of internal fencing, to run a low-intensity rotation on around 1380 ha:

  • Traditional post-and-wire fencing: roughly $104,000 to install, working out to around $10,400 per year in fencing costs over 10 years
  • Virtual fencing: roughly $42,800 to set up and equip the herd, working out to around $5,350 a year over eight years

On these figures, virtual fencing came in at roughly half the annualised cost of traditional fencing before labour savings are even factored in. But it’s important to note these figures are indicative, not universal. The right numbers for your place depend on herd size, terrain, grazing rotations, and what equipment and connectivity are already in place. Ongoing subscription or software costs also need to be factored in along with time to learn and apply it to your operation.

Keep an Open Mind

As James Rodgers said on the day, farmers weighing this up should look at what the technology can do for them, rather than reasons it might not work.

That's not a bad way to approach any forward-looking investment decision - get the full picture, including the numbers, before ruling something in or out.

Thinking It Through? We're Here to Help

That’s where Danielle, as a rural financial counsellor, can help in weighing up the costs, benefits and options for your business as part of our free, independent and confidential service.

It’s exactly why our rural financial counsellors attend events like these, to stay across the latest developments to provide the best service to their clients.