Document Type : Research Paper

Authors

Faculty of Natural Resources, University of Tehran, Karaj, Iran

10.22059/jrwm.2023.350852.1681

Abstract

Rangelands played an effective role in the country's economic and political development prior to its dependence on oil and its derivatives. Therefore, paying attention to the environmental and social stresses brought to these ecosystems highlights the need to use new technologies to diversify production sources and reduce costs. This study was conducted at the Taleghan range station with the aim of financially evaluating electric fences to encourage pastoralists to use this technology in rangelands. For this purpose, the income from the fencing project was investigated. The financial evaluation of the electric fencing project and the time period for its capital return in 2016 was done using the equations of net present value, benefit-cost ratio, internal rate of return, and net present value criterion at different discount rates. The total fixed and current costs of this project were equal to 330 million rials. The income from animal meat production, medicinal plants, the added value of electricity production, the income from the replacement of shepherds, and the net income were equal to 73%, 23%, 7.5%, 103%, and 120% respectively. The criterion of net present value at different discount rates was equal to 127%. Considering the economic nature of fencing technology and the existence of economic benefits resulting from it in the form of a wide spectrum of ecosystem services for the beneficiaries of rangelands, the importance of promoting the use of new technologies in rangelands to maintain and support the production chain of rangelands is highlighted.

Keywords

Arzani, H., Alizadeh, E., Layeghi, M., Azarnivand, H., & Jafari, M. (2018). Implementing grazing system using electric fences for range management. Journal of Rangeland, 11(4), 522-532. (In Persian).
Didier, E. A., & Brunson, M. W. (2004). Adoption of range management innovations by Utah ranchers. Journal of Range Management, 57(4), 330-336. https://doi.org/10.2307/4003855.
Dunn, B. H., Smart, A. J., Gates, R. N., Johnson, P. S., Beutler, M. K., Diersen, M. A., & Janssen, L. L. (2010). Long-term production and profitability from grazing cattle in the northern mixed grass prairie. Rangeland Ecology & Management, 63(2), 233-242. https://doi.org/10.2111/rem-d-09-00042.1.
Grice, A. C., & Hodgkinson, K. C. (Eds.). (2002). Global rangelands: progress and prospects. 299P.
Hyder, D. N., & Sneva, F. A. (1956). Herbage response to sagebrush spraying. Rangeland Ecology & Management/Journal of Range Management Archives, 9(1), 34-38. https://doi.org/10.2307/3894650.
Knight, K. B., Toombs, T. P., & Derner, J. D. (2011). Cross-fencing on private US rangelands: financial costs and producer risks. Rangelands, 33(2), 41-44. https://doi.org/10.2111/1551-501x-33.2.41.
Lee, A. C., Conner, J. R., Mjelde, J. M., Richardson, J. W., & Stuth, J. W. (2001). Regional cost share necessary for rancher participation in brush control. Journal of Agricultural and Resource Economics, 26, 478-490.
MacLeod, N., & Johnston, B. (1990). An economic framework for the evaluation of rangeland restoration projects. The Rangeland Journal, 12(1), 40-53. https://doi.org/10.1071/rj9900040.
Nakhaei, M. H., Khalilian, S., & Peykani, G. (2006). Financial analysis of rangeland management plans in Khorasan province - Birjand, Iran. Quarterly Journal of Agricultural Economic and Development, 14(3), 1-14. (In Persian).
Shamsodini, A., & Khalilian, S. (2000). Economic analysis of the transfer of rangelands in the framework of grazing plans (case study of Fars province). Agricultural Economics and Development, 8(30), 145-170. (In Persian).
Soltani, G. (2004). Determining the rate of return on investment in the agricultural sector. Agricultural Economics and Development, 12(45), 19-40. (In Persian).
Tanaka, J. A., Rimbey, N., & Torell1, L. A. (2005). Introduction rangeland economics, ecology, and sustainability: implications for policy and economic. In Western Western Economics Forum, 4(1837-2-016), 1-7.
VerCauteren, K. C., Lavelle, M. J., & Hygnstrom, S. E. (2006). A simulation model for determining cost-effectiveness of fences for reducing deer damage. Wildlife Society Bulletin, 34(1), 16-22. https://doi.org/10.2193/0091-7648(2006)34[16:asmfdc]2.0.co;2.