Grazing Licences Explained: A Guide for UK Landowners | LegalDocuments.co.uk

What this document is

A grazing licence is a short-term permission granted by a landowner to a grazier, allowing that grazier to put livestock onto a defined area of land for a limited period. Unlike a tenancy, it does not give the grazier exclusive possession of the land.

The landowner retains control, and the grazier's rights are confined to what the licence specifically permits, usually turning out a stated number of animals, for a stated season, on a stated field. The distinction between a licence and a tenancy is not a matter of what the document is called.

Courts look at what actually happens on the ground. If the grazier is given full control of the land, can exclude the owner, and uses it like a tenant would, a court may find that a farm business tenancy under the Agricultural Tenancies Act 1995 has been created, regardless of the label on the paperwork.

Grazing licences are most commonly used for seasonal arrangements, summer grazing, overwintering, or short-term use of aftermath grass. They suit situations where the landowner wants flexibility and does not want to grant long-term rights over the land.

How to use this document

1. Decide whether a licence is the right fit. Before drafting anything, think about how you actually want the land to be used. If you want someone to take full agricultural responsibility for the land over several years, a farm business tenancy is probably more appropriate. A grazing licence works best for short, seasonal arrangements where you stay in control of the land and the grazier simply turns stock out.
2. Define the land, the livestock and the period clearly. The licence should identify the exact area (ideally with a plan), the type and maximum number of animals permitted, and the start and end dates. Vague descriptions cause disputes later. Be specific about whether the arrangement covers the whole of a field or only part, and whether the grazier may use any tracks or water troughs.
3. Set out who does what on the land. A genuine grazing licence usually leaves the landowner responsible for the condition of the sward, fencing, hedging and weed control, while the grazier looks after the animals. If the grazier takes on everything, the arrangement starts to look more like a tenancy. Think carefully about topping, fertiliser, muck spreading and boundary maintenance, and record who handles each task.
4. Address fees, insurance and liability. The licence should state what the grazier pays, when, and whether it is calculated per head, per acre or as a lump sum. It should also require the grazier to hold adequate livestock and public liability insurance, and to comply with animal health, movement and identification rules. Clear wording on who is liable if animals escape or cause damage saves a great deal of trouble later.
5. Keep written records and review each season. Even a short licence should be signed and dated, with both parties keeping a copy. Make a note of any variations agreed during the season, and do not simply let the arrangement roll on year after year without review. Renewing deliberately each year helps reinforce that the arrangement is a licence and not a long-term tenancy by habit.

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