Livestock animals do pose a threat to the environment when they pollute rivers and streams, and when they overgraze. These problems can be minimized by keeping your sheep away from running water and giving them trough water to drink instead, and by rotating the land where they graze. Having a few animals wouldn’t make too big an impact if you are careful, and when you use the wool they produce you are definitely helping reduce your own impact (since you aren’t buying clothing shipped from perhaps thousands of miles away).
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