“Fodder and cashflow difficulties have come together this year and many sheep farmers have been placed in a catch 22 situation, in that if they sell stock they risk defaulting on the terms of the scheme,” said ICSA sheep chair John Brooks.

The terms and conditions of the scheme state that each participant must maintain their reference number of ewes, which is the average number of breeding ewes they declared in the 2014 and 2015 sheep census – or their latest census number for new entrants.

“Flexibility of up to 20% would be required to buffer sheep farmers," said Brooks. "This would remove the unrealistic requirement to hold onto unproductive ewes and allow them to trade normally. It would also remove the risk of a ewe tsunami and depressed prices towards the end of the year.”

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Sheep Welfare Scheme balancing payments announced

Map: How much does your county receive in Sheep Welfare Scheme funding?