Sure, that will work but keep LOD in mind too.
Dont know if LOD supports image files (never tried it) but if not, creatng a 2 sided model plane with the barbed wire texture will get around that prob.(another tip: one sided will work better if you can script it to show only the textured side when you need to see the fenceline.)

A tip on getting contour flow is to use your terrain as the foundation for the flow, e.g. convert the terrain to model (not necessary) then mark out in skin mode, the boundary line, delete all non relevent parts and save as fence flow.mdl (or whatever) so that you can use it to build your fence line on top of it.

Segments can be created and saved with 'save as' so that you can ent_create them when you need to.

Hope this helps,

Cheers.