Twenty-three farmers from the Cooley Peninsula in Co Louth are facing possible fraud charges following an investigation into false EU sheep premium claims.
It has been reported every sheep farmer within 10 kilometres of the border will now be inspected as part of a national evaluation of the ewe premia scheme.
The allegations of fraud emerged when the Department of Agriculture began culling sheep in the area following the outbreak of foot-and-mouth disease in Proleek.
During the cull, it emerged that there were a lot less sheep in Cooley than previously believed, sparking an investigation into the false claims.
Department officials estimate that 20% of all ewe premia applications in the area were false. It is believed that sheep may have transported across the border in order to make two claims, one in Ireland and one in the North.
The Department of Agriculture investigators have sent 23 files to the Director of Public Prosecutions for criminal investigation.
Another 83 farmers could be hit with financial penalties. The department is also investigating the illegal movement and tagging of cattle, another scam that emerged during the foot-and-mouth crisis.