There has been an increase in the number of ewes coming on to the market in recent weeks. This coincides with early lambing flocks drafting lambs and moving ewes identified as culls.

For farmers participating in the Sheep Welfare Scheme (SWS), it is important to note that selling ewes where replacements are not in place or where it means ewe numbers will fall below the flock's reference number could have implications on the level of payment received.

Reference number

The 2020 payment is based on the lesser of a farmer’s SWS reference number or the number of ewes entered on the 2019 sheep census. This is also the retention number that farmers must abide by for 2020.

The Department has previously confirmed that there is no issue with farmers deciding to reduce their reference number at any stage of the scheme.

For example, a farmer with a reference number of 250 ewes can decide to reduce numbers to 200 ewes, with this becoming the rate on which payment will be based on for 2020.

Risk

Regarding the potential risk of failing to notify the Department of a reduction in numbers, the Department advises that if an inspection occurs and a shortfall is identified, then a penalty will be applied.

The penalty is twice the shortfall number.

In the example above, where ewe numbers have reduced from the reference number of 250 ewes to 200 ewes, the penalty would be payment for 100 ewes (ie 50 ewes x twice the shortfall = 100 ewes).

The number of ewes which payment is based upon for 2020 is the lesser of a farmer’s reference number or the number of ewes (over 12 months of age) entered in the 2019 sheep census.

This is also the minimum retention number farmers must possess for 2020 to receive full payment in the final year of the scheme.

Special dispensation may apply where numbers have been reduced due to certified animal welfare reasons.

Replacement options

Where farmers take the decision to sell ewes, but want to ensure their reference number is maintained, there is only one option of purchasing replacement ewe hoggets or ewes to prevent any shortfall from occurring.

It is important to note that for farmers who retain their own replacements, 2019-born ewe hoggets can be included in the reference number ewe calculation in 2020, irrespective of whether they have been run dry or produced lambs in 2020.