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I was told me the problem with the dog was because she was part German shepherd and they didn't like that breed around sheep. Maybe they had bad experiences with that breed in the area in the past. I didn't really get it either?

lol, I wonder if they didn't understand the "shepherd" part... the dog is bread to be a shepherd... It may have been the Greman part, I believe they used the dogs in the war quite a bit. That may be where the stigma arises.