Water erosion causes a series of on-site as well as off-site damages and problems on natural ecosystem. These damages include soil and nutrient loss and finally loss of productivity which causes costs to the society. So, this study attempts to quantify the economic value of soil productivity conservation as one of the important functions of rangelands vegetation and its economic cost by productivity losses. The soil loss amounts were obtained from integrated Geographic Information System (GIS) and map of erosion vulnerable areas using RUSLE model. Supplementary data such as soil nutrients (NPK) valuated from the measurement plots of a portable rainfall simulator (E65). Field plots were constructed to measure soil nutrients and soil loss from different soil types with different resistance to erosion. Rainfall simulation was carried out in three sites on the basis of geology map and different resistance to erosion. Nine experimental unit plots (1*1 m) were used to correlate nutrient loss to sediment losses. Assuming that nutrient loss by erosion could be replaced by fertilizers, economic cost of major nutrients estimated by market prices of fertilizers. Results showed that mean annual soil loss using RUSLE was 27.44 t ha-1 y-1 ranging from 0.0 to 996.06 t ha-1 y-1. Also, 114.17 kg ha-1 y-1 of N, P, K elements were lost in 2010 due to soil erosion in the degraded rangelands which costs (738944 Rial) 71.5 US$ ha-1y-1. Total economic cost of soil nutrient loss in 94978.6 ha of the rangelands of Nour-rud watershed basin, was estimated 70×10^9 Rial (6.8×106 US$). The maximum annual cost of soil nutrient loss was estimated in the "TRujs" geological formation (1.23×106 US$) consisting of "gray shale, silt, sandstone, conglomerate" and the least cost belonged to the "Jl1" geological formation (0.916*106 US$) which consists of "thin gray dolomite limestone". In economic terms there was a direct relationship between soil nutrient loss and its economic cost.

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