New South Wales Farmers are one step closer to the use of virtual fencing on their farms.

A parliamentary committee has recommended the use of the technology and amendments to the Prevention of Cruelty to Animals Act to allow the use of electronic collars on livestock.

The collars would use sound, vibration and mild electric pulses to teach stock to avoid virtual fences.

Rural Editor Emily Minney spoke with Committee Chairman and Barwon MP Roy Butler about the potential rollout.