The Department of Agriculture has identified more than 4,000 sheep farmers who may be in breach of the ewe premium scheme in its examination of irregularities similar to those uncovered on the Cooley peninsula.
A Department spokesman confirmed yesterday that 4,281 farmers who had sold sheep at factories between the introduction of permits for slaughter last February and April 7th, have been warned they could face penalties.
The spokesman added that EU premiums will not be paid to these farmers until they have accounted for the animals on which they have made claims.
However, he said it was likely the Department would proceed with payments to the 45,000 other herd owners while the investigation is continuing throughout the State.
Farmers who applied for the ewe premium last January should have held the ewes on their farms for 100 days, a retention period which ended on April 7th.
When foot-and mouth broke out, the Department banned the movement of all animals, except for slaughter under permit, and it was a computer check comparing the number of applications for slaughter permits with ewe premium applications which brought forward the 4,281 names.
The letter sent to the herd owners has caused anger among farmers, and the Irish Farmers' Association said it was outraged by the accusatory tone of the letter.
"Farmers were entitled to sell their lambs, rams and ewes on which they had claimed no premium in the period in question. The Minister must withdraw this letter immediately," said Mr Frank Corcoran, chairman of the organisation's national sheep committee.
Mr John Deegan of the Irish Cattle Traders and Stockowners Association said he had received calls from many farmers who were worried about the threatening tone of the letter.
"Honest farmers have already endured cash flow problems because of the non-payment of the premium. It was legitimate to sell lambs, rams and even ewes not entered in the ewe premium application," he said.
The Department spokesman said the letter would cause no problems for any farmer who had sold sheep legitimately, and the 4,281 flock owners involved had until July 16th to inform the local district veterinary office to allow the processing of the applications to proceed.
Following the first restocking on the Cooley peninsula on Tuesday, the Cooley Compensation Campaign, said yesterday that it would be seeking a judicial review of the levels of compensation paid to farmers who had their herds culled during the foot-and-mouth campaign.
Mr John Elmore, the farmer leading the campaign, said he was urging sheep farmers in the area to ignore the independent panel to assess the levels of compensation, which had been agreed between the IFA and the Department of Agriculture.