The Department of Agriculture says the Sheep Welfare Scheme is to launch next month.
The funds contribute to animal and health welfare and also provided a boost in income for farmers.
All existing participants in the scheme will be automatically enrolled in and do not need to take any action should they wish to remain in the scheme.
The scheme is funded to the extent of €19.5m in 2022.
All eligible new entrants to the sheep sector who wish to apply to participate in the scheme should return their forms by 1st February.
