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Senior Agriculture and Rural Land Solicitor Grazing licences
As a farmer or rural landowner, it is not unusual to be approached by another farmer or individual seeking short-term use of a small piece of your land that might otherwise remain unused. Typical uses for such a parcel include keeping a horse or grazing sheep. In return, the grazier pays you a nominal rent or provides services in lieu (perhaps cutting the hedges). If you are generally in agreement with such an arrangement, you will need a grazing licence, sometimes also called a grass keep licence. Grazing licences allow graziers limited use of the land while ensuring you retain overall control.
It is surprisingly common for landowners to proceed without a formal grazing licence or maybe even drafting a short document themselves. The risk, though, is that the grazier may inadvertently gain rights over the land.
Grazing licences: key considerations
There are some key considerations concerning grazing licences to ensure you retain overall control:
- Short-term: Typically, grazing licences are seasonal, often from May to October. However, any period of up to 364 days is acceptable. The grazier must vacate in good time to prevent them from acquiring further rights.
- Defined purpose: They allow activities such as grazing but do not grant wider rights over the land.
- No tenancy rights: A carefully structured licence prevents the grazier from acquiring formal security of tenure.
Inadvertently granting the grazier rights over the land can affect your claim for farm subsidy payments. Poorly drafted grazing licences can also lead to the loss of Capital Gains Tax and Inheritance Tax relief.
How we can help
As agricultural and rural land specialists, we will draft you a clear, precise grazing licence tailored to your specific needs. Very often, these are standalone documents. However, they can also form part of a larger transaction. We will ensure that:
- you retain full control of your land; and
- the agreement reflects the precise terms agreed between you and the grazier.