Beyond the Spreadsheet: Rethinking ROI for Virtual Fencing

When farmers consider adopting a new technology, one of the first questions they (or their accountant or banker) often ask is: “What’s the return on investment?”

It’s a fair question. But when it comes to virtual fencing, it’s also, in many ways, the wrong question.

It’s hard to pin down a single ROI for virtual fencing because the benefits are far more dynamic, interconnected, and farmer-specific than traditional metrics can capture. And while that may seem like a hurdle to adoption, it’s actually a signal of just how powerful and transformative this technology can be.

The ROI Is Real: But It’s Not Always Where You Expect It

Virtual fencing is more than just a high-tech replacement for electric tape and fence posts. It’s a tool that enables a fundamental shift in the way livestock are managed—giving farmers the flexibility to move stock remotely, experiment with rotational or regenerative grazing, and respond in real time to what’s happening on the ground.

For many of our eShepherd farmers, the real value of virtual fencing emerged only after they started using it. In many cases, the return came not just in operational savings, but in unexpected benefits—like improved animal behaviour, better pasture utilisation, fewer injuries, and even improvements in mental wellbeing.

In short, the traditional ROI equation misses the point. This isn’t just about dollars saved; it’s about farming smarter.

A New Lens on Value

Imagine a system that not only saves hours of manual labour but also gives you visibility of your herd at all times, more control over pasture growth, and the freedom to manage grazing from your phone. Virtual fencing enables all of that. But how do you put a price on being able to spend more time with your family, feeling less stressed and more in control. Or on the value of a reduced carbon footprint? How do you quantify a herd that’s calmer, easier to handle, and gaining weight more consistently?

Farmers who have used virtual fencing often report these “soft” benefits as being the most transformative, yet they are the hardest to measure in a conventional ROI spreadsheet.

That’s why we encourage a different approach. Start with your biggest pain point. Whether it’s time, labour, land use, or stock performance, virtual fencing is a tool that can be adapted to help you solve it. Start small, test and learn, and build from there. The returns will follow—and they’ll likely surprise you.

Tech That Grows With You

Virtual fencing is increasingly being paired with tech such as smart weighing platforms, satellite pasture monitoring, and integrated data systems. These technologies work better together, delivering a more holistic view of farm performance and empowering farmers to act with precision.

But even here, the true value only becomes clear over time. Insights from real-time weight gain data might tell you when to move stock. Pasture data might reveal hidden potential in underutilised areas. And AI-driven tools are on the horizon to help interpret it all so farmers get actionable insights, not just more numbers.

Redefining the ROI Conversation

The challenge of defining ROI in advance is not a flaw—it’s a feature. It reflects the complex, interconnected nature of farming and the reality that every farm is different.

Instead of trying to calculate every dollar before making a decision, we invite farmers to think of virtual fencing as an opportunity to unlock new efficiencies, experiment with new ideas, and reclaim time and headspace to focus on what matters most.

And as we’ve seen with our customers across Australia, the US, and New Zealand, once farmers start using the technology, the value becomes unmistakable.

Let’s move the conversation beyond “What’s the ROI?” to “What’s possible?”