The Lynx UK Trust has announced an agreement that will insure the UK's whole sheep population against lynx attacks throughout a proposed trial to reintroduce the wild cat to the UK.
The agreement, with Lloyds Syndicate ARK Speciality Programs, is seen as an attempt to ease farmers' concerns surrounding the danger of reintroducing the lynx to the British countryside.
If the proposal trial is approved by Natural England, six lynx will be reintroduced for a five year period in the Kielder Forest, Northumberland.
They will be closely monitored with satellite tracking to see how they fit back into the UK ecosystem, where they could become a natural control on the currently overpopulated deer species.
But the National Sheep Association (NSA) has said the proposals would have a "detrimental impact" on farmers' livelihoods.
The NSA said the debate so far has only focused on the positives, with 'little consideration' for evidence which suggests similar projects in Europe have experienced limited success.
"Releasing this predatory species puts at risk all the things that emanate from a successful sheep farmed area – the landscape and its associated ecology and wildlife, local working communities and a vibrant rural economy," the group said.
'Wide-reaching'
NSA chief executive Phil Stocker said the impact of it would be 'far wider-reaching than just a few sheep lost'.
"The UK's ecology is built on huge diversity which is dependent on human management and farming in the majority of cases," he said.
"This hierarchy of species interact with each other and we already have many examples where a lack of intervention and predator control result in the collapse of iconic birds and mammals such as the red squirrel and the curlew - two species that Northumberland is renowned for.
"The UK is very different from countries where top level predators such as big cats can survive, in terms of land use, wildlife and our population and infrastructure."
'Natural balance'
However, Lynx UK Trust believes the animal belongs in the UK ecosystem, having been hunted to extinction around 500-700AD.
The Trust believes reintroduction is vital in re-storing a natural balance in the British countryside.
Lynx UK Trust has pledged to establish a sheep welfare programme which will provide grants to build fencing, buy outbuildings for lambing and bring in llamas to act as guardians for sheep flocks.
Chief scientific advisor to the Lynx UK Trust, Dr Paul O'Donoghue told The Telegraph: “There are some really exciting ideas from other countries, such as guardian animals like llamas,” said chief scientific advisor to the Trust, Dr Paul O'Donoghue.
“We've seen these successfully used in the Scottish Highlands keeping off foxes, and in an American study they reduced sheep kills from dogs and coyotes by 66 per cent; half of those farms saw predation stop entirely.
“Those are astounding results, I'm amazed we don't already see them widely in use; we might be able to reduce all sheep predation by two thirds, just by providing farmers with llamas.”
'Criminal offence'
Nevertheless, the NSA said it would therefore be a 'criminal offence' to keep them without a local authority licence.
Currently, these licences are only available for zoo and captive animals, not for those being released into the wild.
The current law would also allow farmers to legally shoot lynx causing distress to their animals.
And since lynx's are natural predators, farmers' see this as a risk to their livestock if a re-introduction were to happen.
NSA's Phil Stocker continued: “This country is a very different place to what it was 1,300 years ago and NSA does not believe we have enough largescale, suitable habitat to support the minimum population of 250 lynx that is needed for true genetic sustainability.
“Animal welfare and disease biosecurity, as well as unconsidered changes in ecology if we were to see pastoral farming decline, also present huge problems.”
