Journal of Range and Watershed Managment

Financial Analysis and Evaluation of the Use of Electric Fence in Increasing Rangeland Productivity

Document Type : Research Paper

Authors

Hossein Arzani
Esmaeil Alizadeh
Setareh bagheri
Mohammad Jafari

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

Gross production
Financial evaluation
Solar fences
Return on investment
New rangeland technologies
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Journal of Range and Watershed Managment
Volume 76, Issue 2
Summer 2023
Pages 149-158

  • Receive Date 06 November 2022
  • Revise Date 17 January 2023
  • Accept Date 01 May 2023
  • Publish Date 23 July 2023

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