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Fencing is essential for rotational grazing, a pivotal practice to support conservation and natural resource management. Virtual fencing offers a technological alternative to traditional fencing and represents potential for increased resource optimization in rotational grazing. While the virtual fencing industry is emerging in the US, adoption is still limited and research on its benefits and broader implications is still minimal. This exploratory study examined the potential and limitations of virtual fencing products and assessed the conditions that enable ranchers in the Midwest to reap the most benefits from their use in grazing livestock. We conducted qualitative interviews with company representatives bringing virtual fencing to the US market and ranchers piloting them on their livestock operations. Environmental benefits included facilitation of strategically-planned rotational grazing that improves pasture management. Economic benefits included significant savings in time, money, and labor for ranchers. Animal welfare was perceived as positively impacted, with the technology allowing detailed tracking of animal behavior and movement. Challenges included current market capacity to meet demand for virtual fencing products, the costs, and concerns about collar functionalities like GPS accuracy and battery life. The interaction of virtual fencing with existing fencing laws is also uncertain, representing uncharted territory. Overall, while virtual fencing shows promise in revolutionizing livestock management, its adoption is contingent on addressing these multifaceted challenges. The findings provide a roadmap for further investigations pertaining to the use of virtual fencing to facilitate natural resource management and conservation practices, specifically adaptive rotational grazing of livestock.