While Grass is all over the place in the game, this specifically refers to the Grass Tufts that appear which can be cut/picked for Grass. Grass is a very important plant for survival and is required for basic camp fires, torch, traps and more. The Grass tufts can appear in many different types of Biomes and regrow after being picked.
Alternatively, players can use a Shovel to pull the entire tuft out and replant it elsewhere. Replanting a tuft will require you to fertilize it before it will grow and then again after every 20 or so harvests. This will allow you to collect ample grass from the comfort of your own settlement.
