This study shows that livestock grazing and grass cutting can determine whether a grassland is adding (source) or removing (sink) carbon (C) to/from the atmosphere. The annual C balance of 1855 managed grassland fields in Great Britain was quantified for 2017–2018 using process modelling and earth observation data. The examined fields were, on average, small C sinks, but the summer drought of 2018 led to a 9-fold increase in the number of fields that became C sources in 2018 compared to 2017.