Every country sign always comes with a reason why it is being signed like this way.
He kindly explains the fact Deaf Faroese locals choose to sign this way due to the number of sheep living in the Faroe Islands is outnumbered the number of residents.
He estimated around 50,000 Faroese locals are living around, while 100,000 sheep are living in the Faroe Islands!
Sheep are everywhere! You can probably hear “baa, baa” every minute.
Thus, Deaf Faroese locals feel it is a proper sign to represent the Faroe Islands.