This grazing agreement creates a short term licence to graze a field. It can be used to graze any animal, from horses and other equines, to cows, sheep and other livestock. It should be used where the land is not used for business use.
About this grazing agreement
Most of our competitors sell grazing agreements that are either short term common law tenancy agreements or agricultural leases that restrict the tenant to using the land for the single purpose of feeding livestock.
Using a lease to achieve the end is fine, but doing so gives the tenant certain rights at the expense of the land owner. For example, the landlord must notify the tenant of his intention to end the grazing lease well in advance and in a certain way.
This grazing agreement is different, in that it is a contract to take what grows on the land rather than a licence to occupy. Because it gives the licensee no rights of occupation, the land owner concedes far fewer rights than he or she would do under a grazing lease.
This agreement can be used for livestock of any type, including sheep, horses and cows.
The law relating to this grazing agreement
The legal background to grazing agreements is, in our opinion, quite interesting and worth a short note.
Farm tenancies require the landlord to comply with the obligations set out in statute law that give and protect the rights of the tenant. The law attempts to rebalance the power between tenant and landlord.
Loopholes in the law have been closed over the years, to the point where any contract that allows a land owner to receive payment in return for letting someone else occupy the land is construed as a tenancy agreement, even if the written contract is dressed up to look like a licence agreement.
To make matters worse for the landlord, his faux licence is likely not to contain provisions that protect his rights in the same way that a proper lease would do, for fear of looking like a lease.
This grazing agreement is neither a lease nor a licence to occupy. It is known in law as a "profit à prendre", and the effect of it is to grant a right to buy a crop and to take the crop using animals to graze the land. To qualify as a profit à prendre, a single specified crop must be sold (in this case grass) and the collection of the crop must take less than a year.
When to use this grazing agreement
This agreement can be used when the land will be used:
- For 364 days or less (a 9 month contract is often used as it gives the land time to recover);
- Only for grazing animals on grass;
- For any type of animal, including livestock and horses.
Note that this agreement does not permit other uses such as breeding or equipment storage. Both require a formal lease. This grazing agreement is confined to “taking a crop” of grass.
If there happens to be a building on the land, a judge would assess the facts and decide whether the real arrangement was for a lease. For example, if there was an existing building which was used solely to shelter animals grazing, our opinion is that the deal would still be a licence. But if the buildings were used to store a tractor you would be safer to use a lease.
If you want to let your land for more than a year, then you should consider using a farm tenancy agreement, or if the land will be used for non-agricultural business use, a land lease.
You should enter into the contract “with your eyes open” as to the damage to the surface of the land which can be inflicted by over use and by wet weather. If the licensee is to graze 4 pet sheep on the land, the damage is likely to be very different to that caused by a herd of cows. You can help to protect your land by granting a licence for much less than a year, allowing the field or pasture to recover.
Remember that different animals eat different plants. It might be a good idea to alternate the types of livestock allowed on the land so as to keep certain species of plants from overwhelming others.
The terms of the licence should be kept very simple and must apply only for the purpose of grazing. Responsibilities for mending gates, and undertaking any long term improvement should be left unspoken as responsibilities of the landlord.
The grazing licence covers the following points:
- The sale;
- The grant to the buyer to access the land;
- Use of services;
- Condition and repair;
- Restrictions on the licensee;
- Positive obligations of the licensee;
- Licensee's indemnity;
- Access for Licensor;
- Transfer and alienation;
- Other matters.
This document is drawn by Net Lawman lawyers to comply with current New Zealand law.
Buy from Net Lawman
Reasons to buy from Net Lawman
Guaranteed to be the right document
This document comes with a full money back guarantee. You take no risk that it might not be right for your situation. Once you buy it, we’ll give you 30 days to evaluate it in any way you want. If for any reason it's not right, just e-mail us and we’ll refund your money in full immediately. Read more about our guarantee policy.
Every document is drawn by an experienced, qualified lawyer and reviewed by another - just as in any law practice. We incorporate changes to the law quickly so that our documents are up to date. Read more about how we draw our documents.
Real world experience added
As much as possible, our documents and guidance notes incorporate practical angles that only lawyers with commercial experience could include. Our drafting team have not just many years experience advising clients in practice, but also have the experience owning and managing businesses in a wide variety of industries. Our documents aim to give you an edge as well as achieving a legal outcome. Read more about the Net Lawman team.
We write our documents in language that everyone (and not just lawyers) can understand. Not only does this make your task of editing the document easier, but it also decreases the likelihood of another party breaking or disputing the agreement on the grounds of not having understood the terms. Read more about why plain English is important in legal documents.
Easy to use, even if you have no legal knowledge
Many of our customers are lawyers, but our documents don't require you to be one. Wherever it may be needed, our guidance notes explain the purpose of each paragraph, whether we recommend changing it, and what you might like to consider before you do so.
Our view is that, when editing our documents, you shouldn't have to worry about how to add legal wording. So our documents consider a far greater range of issues than our average customer will need, and because we avoid cross referencing paragraphs, we make it easy for you simply to delete what you don't need without affecting the rest of the document.
Support from lawyers if you need it
Our legal team is on hand to help customise a document in an unusual circumstances, or even to draft a document from scratch.
Buy once and reuse
When you buy a document from us, we grant you a licence to use it again. Keep the master copy safe and create new child documents from it whenever you need them. This applies to lawyers in practice as well as individuals and businesses.
Document download and delivery
Immediately after payment, you can download your document from our website. We also deliver immediately by email, but delivery is out of our hands and may take a few minutes.
Contact us about this document
If you have any questions about this document that we don't answer in the text above, please contact us and let us know how we can help. We aim to reply within 24 hours.
Leave feedback about this page
If you have noticed a bug or a mistake on this page, or just want to give us feedback, we'd love to know. Nothing is too small or too big. Send your message on this feedback page.
"Compared to the costs quoted by our lawyers your service is an absolute bargain. We can now invest our money where it really matters!"Gary Morrison
"I appreciate your patience. I have to say though it took me a while (I had almost given up) to come across your internet site, but I was quite impressed with the manoverabilty of the site itself and the services it offers. Normally I am very cautious about internet services and am pleasantly impressed by you professional response. Without doubt I will definitely be recommending yourselves to others."Razwana
"I have found the product exactly what I wanted and the notes helpful - as well as it being easy to locate, buy and download. There should be a better way of making your product more widely known. I have recently had experience of a tailor-made lease and this left a lot to be desired - whereas your product is well researched and ticks all the boxes."Ted