Grazing Licence (New Zealand)

A Grazing Licence in New Zealand grants the right to occupy and use the land for the agreed purpose and records the rent, term, and the obligations of the landowner and the lessee under the Property Law Act 2007.

In New Zealand, grazing licences are governed by the Property Law Act 2007 (PLA 2007), which provides the general legal framework for licences and interests in land. A grazing licence that does not create a leasehold interest does not need to be registered against the Certificate of Title at Land Information New Zealand (LINZ) — this is one of the key practical advantages of a licence over a lease for short-term rural arrangements. The landowner retains full title to the land and can sell or otherwise deal with the land without being bound by a registered leasehold interest.

New Zealand's pastoral sector is characterised by a wide range of grazing arrangements, from simple verbal agistment deals between neighbours to more formal written grazing licences covering large areas of land and significant livestock numbers. The country's diverse farming systems — including sheep and beef farming across hill country, dairy support blocks, deer farming, and viticulture support operations — each have particular requirements for grazing licences. For example, dairy heifer grazing licences during the winter or transition period are common on South Island farms, while sheep and beef operations in regions such as Hawke's Bay, Manawatu-Whanganui, and Canterbury frequently use grazing licences for seasonal pasture management.

The National Animal Identification and Tracing Act 2012 (NAIT Act) plays a central role in New Zealand grazing licence arrangements involving cattle and deer. NAIT requires all cattle and deer to be individually identified with approved RFID tags and all movements to be recorded in the NAIT system (administered by Ospri NZ) within three days of arrival or departure from any property. These obligations apply regardless of whether the animals are owned by the grazier or the landowner, and regardless of the nature of the grazing arrangement. Non-compliance with NAIT obligations carries significant penalties and can affect New Zealand's disease traceability, which is critical for market access.

Environmental compliance under the Resource Management Act 1991 (RMA) is another important consideration for grazing licences in New Zealand. The RMA regulates the use of land, water, and other natural resources, and imposes obligations on both landowners and occupiers (including graziers) to avoid, remedy, or mitigate adverse environmental effects. Specific requirements that commonly affect grazing licences include stock exclusion from waterways under regional plan rules, requirements for fencing of riparian margins, resource consent requirements for water takes (pumping for stock troughs), and compliance with the relevant regional pest management plan for the control of weeds and pest animals. Both landowners and graziers should check the applicable regional plan rules before entering into a grazing licence.

The Animal Welfare Act 1999 imposes obligations on the person in charge of animals (which includes graziers) to meet the physical, health, and behavioural needs of the livestock in their care and to minimise pain and distress. Graziers are responsible for the welfare of any livestock they bring onto licensed grazing land, even if those animals are owned by a third party.

A Grazing Licence should be used whenever a New Zealand landowner wishes to allow a grazier to run livestock on their rural land for a specified period, without granting a formal lease or tenancy. The licence is suitable for a wide range of pastoral grazing arrangements, including short-term or seasonal grazing (such as summer or winter grazing), agistment of cattle or sheep while the owner is establishing a new farm, dairy heifer wintering or transition grazing on a support block, deer agistment, and horse grazing.

The grazing licence is particularly useful when the arrangement is expected to be temporary or seasonal — for example, running cattle on a neighbour's paddocks during the dry summer months when home pasture is depleted, or taking in a mob of dairy heifers for six months over winter. Because a grazing licence does not create an interest in land, it offers the landowner flexibility to end the arrangement on reasonable notice and to retain full control of the land.

A grazing licence is also appropriate where the landowner wants to supplement their farm income by licencing spare grazing capacity to a grazier, without entering into a longer-term and more legally binding farm lease. This is common on lifestyle blocks and small rural properties in New Zealand, where owners may have more pasture than they need for their own livestock.

The document is relevant across all major pastoral regions of New Zealand — including Waikato (dairy), Canterbury (sheep, beef, and cropping), Hawke's Bay (sheep, beef, and viticulture), Southland (dairy), and Manawatu-Whanganui (sheep and beef). Grazing licences are also used in the high country of the South Island, where pastoral run holders under Crown pastoral leases (regulated by the Crown Pastoral Land Act 1998) may licence grazing to third parties, subject to the terms of their Crown lease.

Whenever livestock will be grazed on another person's land — even informally between farming neighbours — it is strongly recommended to document the arrangement in writing. A written grazing licence establishes clearly the type and number of stock permitted, the grazing fee and payment terms, the start and end dates, water access arrangements, fencing responsibilities, NAIT obligations, insurance requirements, and the procedure for removing stock at the end of the licence. Without a written record, disputes about these matters can be difficult and expensive to resolve.

A well-drafted New Zealand Grazing Licence should address all the key terms needed to clearly define the rights and obligations of the landowner and grazier, and to comply with relevant New Zealand law.

The parties section must correctly identify the licensor (landowner) and the licensee (grazier) by their full legal names, including the NZBN for registered business entities. For farming companies, partnerships, or trusts, the full legal name of the entity should be used. Both parties' physical and email addresses for service of notices should be included.

The grant of licence section is critical. It must clearly state that the licence is personal and non-transferable, that it does not create a lease, tenancy, or any estate or interest in land, and that the licensor retains the right to use the land and to access it at any time. The description of the licensed land should include the legal lot and plan reference (if available), the area in hectares, and the specific paddocks or areas being licenced — particularly where only part of the landowner's property is being licenced for grazing.

The livestock and use section must specify the type of livestock permitted (e.g. beef cattle, sheep, dairy heifers, deer) and the maximum stocking rate. In New Zealand, stocking rates are commonly expressed in Stock Units (SU), where 1 SU equals approximately 1 breeding ewe or equivalent. The section should include NAIT compliance obligations for cattle and deer — the licensee must confirm all cattle and deer are RFID-tagged and that all movements are recorded in the NAIT system within 3 days under the NAIT Act 2012. Animal welfare obligations under the Animal Welfare Act 1999 should also be noted.

The grazing fee section should specify the fee amount in NZD (exclusive of GST at 15%), the basis on which the fee is calculated (e.g. per stock unit per week, or a flat monthly fee), and the payment frequency and due date. GST obligations should be addressed — if the licensor is GST-registered, a valid tax invoice must be issued and GST is payable in addition to the stated fee.

The water access section should specify what water sources the licensee may use (e.g. existing troughs, farm reticulation, dams), who is responsible for maintaining water infrastructure, and the limitations on water takes under the RMA 1991. Any new water take requires a resource consent from the relevant regional council.

The fencing section should clearly specify who is responsible for maintaining internal fences, boundary fences, and any stock exclusion fencing around waterways. Boundary fencing between adjoining landowners is governed by the Fencing Act 1978, under which costs are generally shared equally unless otherwise agreed.

The insurance section should specify the minimum public liability insurance the licensee must hold, confirm that the licensor must be noted as an interested party, and require proof of insurance on request. The indemnity clause should make clear that the licensee is responsible for any loss or damage caused by their livestock.

The RMA and biosecurity compliance section should confirm the licensee's obligations to comply with the relevant regional plan rules, resource consent conditions, and the regional pest management plan, and to comply with the Biosecurity Act 1993 and all MPI biosecurity requirements.

The termination section should specify the notice periods for termination by either party, the circumstances of immediate termination for default, and the livestock removal procedures and timelines on termination. The governing law clause should confirm that the licence is governed by the laws of New Zealand and reference the key applicable statutes. The forms-legal.com Grazing Licence (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements.