Farmers in North Wiltshire are dumping carcasses in ditches and leaving them to rot to avoid paying a disposal charge.
Trading Standards officers have been called out to deal with eight illegally dumped animals in the area in the last week alone.
Steve Clover, Wiltshire Trading Standards Manager said: "It is quite alarming the way it is escalating and it is simply not acceptable.
"Not only is this behaviour anti-social, there is also a potential disease risk to wildlife and humans."
Mr Clover believes new European legislation, banning farmers from burying dead animals on their land, has led to the increase in illegal dumping of dead livestock.
The EU legislation, which should become law by the end of May, states farmers must dispose of dead livestock, known as fallen stock, at appropriate sites such as a knacker's yard, hunt or incinerator.
"I can understand the farming community being concerned there has been a change to farming practices which have existed for hundreds of years," said Mr Clover.
But he said dumping animals was illegal and carries a fine of £5,000.
"If we find sufficient evidence we will consider prosecution," he said.
The Government is trying to introduce a scheme where farmers pay an annual subscription between £50 and £200 depending on the size of their farm, to have any number of their fallen stock legally disposed of.
But the Government has failed to get the scheme up and running before the EU legislation becomes law.
Farmers are therefore dumping animals illegally because they cannot bury them and do not want to pay the price of legal disposal.
Farmer Nigel Parfitt, from Rodbourne, near Malmesbury, said the new legislation was a waste of time and no alternative has been found.
"Everyone is fed up and people can't see why it is happening. There is nothing wrong with burying animals on farms. We bury humans in the ground so why can't we do the same with animals?" he said.
But he said he was shocked to hear animals were being dumped illegally.
"Farmers would be appalled to hear this. It is appalling," he said.
And although the new legislation should be introduced by the end of the month it may be three months before a national collection scheme is started.
The Department of for the Environment Food and Rural Affairs have said in the meantime farmers must find their own way of disposing their fallen stock, at legal sites.
Mr Parfitt said: "Taking animals to the incinerator is costly and they are trying to force this on us.
"We feel there should be an alternative first. The collection scheme is subsidised for a year but after that we will see costs rise and rise."
He said farmers felt the legislation was simply a reaction to the last BSE crisis and it had come in too late.
"BSE is virtually gone now and there is no reason for this legislation. An alternative would be to check the sites were animals are buried on farms and make sure they are not near water courses."
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