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9 January 2015 Last updated at 10:08 GMT
Insurance agency NFU Mutual, which specialises in rural businesses, said dog attacks on sheep cost the farming industry more than Â£1.2m annually.
BBC Midlands Today's Cath Mackie visited a farm in Martin Hussingtree, Worcestershire, where a flock has been attacked three times since the beginning of the year.
The farmer is warning if he sees any more dogs among his sheep, he will shoot them.
The number of sheep attacked by dogs has risen in the Midlands, some farmers have said.