We are regularly asked to advise on grazing licences – on both sides of the deal.
Grazing licences are common in the agricultural sector, but they are often fairly informal agreements, and parties can find themselves in unintended and unwanted positions if the licences aren’t properly drafted.
Our most recent landlord side deal related to the purchase of a significant agricultural property with existing licences which we were asked to check out. Unfortunately the licences were far from ideal, leaving our client at risk of both tax problems and potential loss of subsidies because of the drafting. We were able to advise on the risks and what needed to be done and then leave it to the agent to negotiate the changes as part of the deal.
We also recently advised a licensee on her position, as the landowner was threatening to terminate. There was no right in the licence to terminate except for default, and our client wasn’t in default, so we were able to assist her in keeping her livestock happily munching the grass for the season.
Grazing licences are, of course, different to equestrian leases of land, which are themselves different for commercial and non-commercial use.
Our Agricultural sector team advises on equestrian matters as well, which is not only helpful our clients but also for the various members of staff who have horses.
Get in touch
If you’d like to find out more about this update please get in touch with Derryn Rolfe.