Wales’ reputation for… over-fondness for sheep rose out of their culturally cunning nature and not anything more skeevy.
Folklore tells us that when Wales became part of the United Kingdom and came under its broader laws the punishment for stealing a sheep (lopping off a hand) was more severe than for doing something far more intimate with the sheep (where you only lost a finger of your choosing). So a rash of sheep-stealers confessed instead to more amorous intent to keep both their hands. Naturally, this meant an over-representation in official records of Welsh sheep-fanciers and contributed to the now legendary (and totally unearned) reputation.
Sheep of Wales, you may now rest easy.