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acres of oats returned good crops. What was threshed averaged 50 bushels, but the bulk was grown for chaffing. Only 66 acres of wheat was grown. The farmers, after last year's experience, have decided to grow very little of this cereal. The rest of the cultivated portion s was in roots and sheep-feed. It is estimated that about twenty thousand lambs were disposed of during the year at prices ranging from Bs. to 135., according to weight and condition. The lesser amount received for lambs this year was compensated for in the higher values which wool reached. An estimate made of results for the year gave, £1 3s. as the gross returns per acre over the whole estate. The town is assuming the appearance of a place of importance. A new public hall has been erected, which is quite a credit to the promoters. The trades which have one or more representatives are blacksmiths, carpenters, bootmakers, builders, wheelwrights, butchers, and bakers. Three general stores are supplying the wants of the district, and auction sales of stock are held about twice a month. There are a few defaulters who have not yet complied with all the improvement conditions, and I have to report on over-cropping on one or two fields, but the whole estate is well farmed on economical as well as profitable lines. The arrears of rent amount to only £40 lis. 6d. Richmond Brook Settlement. —Area, 5,854 acres. Opened for settlement in the year 1899. This settlement, like the neighbouring one, Starborough, may be classed among the prosperous. All the tenants (11) have done fairly well during the past year. The improvements the tenants have put on the estate are valued at £6,874. The population has increased by 10, and now counts 50 souls. The stock carried shows a slightly increased number of sheep on last year's returns. There were at the time of inspection 5,800 sheep, 32 head of cattle, and 60 horses. The Jambing season produced about 90 per cent, of lambs. 766 acres were cropped —254 in barley, 169 in oats, 106 in wheat, the remainder in roots and sheep-feed. Barley averaged 22 bushels per acre, wheat about 30 bushels ; oats made 2 tons of sheaves to the acre. There are no defaulters, and no arrears of rent. Waipapa Settlement. —Area of acquired lands, 3,755 acres 2 roods ; of Crown lands, 49,410 acres. Opened for selection in the year 1901. The 53,165 acres is divided into 5 small grazing-runs. Mostly high country. The settlers, however, appear to be doing well, and there are now approximately 6,103 pounds' worth of improvements done by them, and the work of improvement is still going on. There are 5 houses, containing 21 souls. A few small crops of oats and roots are grown, with fair results. The whole country is devoted to grazing between eight and nine thousand good sheep. There are no defaulters, and no arrears of rent. North Bank Settlement. —Area, 12,895 acres. Opened for selection in 1903. 10,126 acres were cut up into holdings varying from 604 acres to 3,385 acres ; the two larger areas being held under small grazing-run tenure. There are 7 houses, occupied by 34 souls. About 200 acres of oats and peas were grown, with moderate results. The stock on the estate consists of 2,400 sheep, 30 to 40 head of cattle, and 26 horses. There are no defaulters, and the improvements are estimated to be worth £850. Rainford Settlement. —Area, 246 acres. Opened for settlement in 1903. It was allotted to 11 selectors, who had effected improvements at the date of inspection (October, 1905) to the value of £1,077 16s. 6d. There are now 9 dwellings, occupied by 34 souls. Three of the selectors do not reside, having been allowed exemption by the Land Board for a time. The land is devoted chiefly to dairyfarming, about 130 head of cattle being kept, also 25 horses. Very little cropping is dons. Some of the settlers have had trouble with the overflow of the Waimanarara, the uncertainty of its channel in times of flood makes it difficult to provide against encroachment. There is considerable demand in the Kaikoura District for small holdings of this quality of land. Flaxbourne Settlement. —Area, 44,928 acres. Opened for selection in 1905. Now occupied by 106 rural selectors, and 8 selectors of allotments in Ward Township. The holdings range from 5 acres to 2,943 acres. Although this estate has been occupied by Crown tenants for only nine months, they have effected improvements to the estimated value of £14,301, consisting of buildings and fencing. Sixtythree houses and huts have been built, and 143 A miles of substantial fencing erected. Nearly all (the exceptions being selectors of 5 and 10 acres) have done sufficient work of a permanent character to comply with the demands of law for the first year's occupation. Residence, which is required from the date of lease, is being fulfilled by 90 selectors out of 106, excluding the Township of Ward (wherein 8 allotments have been selected, but up to date none have been built on). There was considerable difficulty experienced by the tenants in getting material for building and fencing during the first months immediately after their acquiring their leases, through the bad state of the roads; and just after possession the sheep-market sprang up to the highest point it had reached for thirty years. Those determined to stock had to pay from £1 ss. to £1 Bs. per head for ewes. However, the market steadied itself by spring, and there are now grazing on the estate 36,760 sheep, 663 head of cattle, and 225 horses, chiefly draught. The first encouragement the settlers had was the comfortable price received for their first crop of wool. The season has been splendid [for grass, and in some cases the feed has gone to waste. 815 acres have been turned up by the plough ; 190 acres were put into oats for horse-feed (moderate crop), and 300 acres into roots and rape for fattening. The freezing companies purchased about six thousand fat sheep and lambs from the settlers, notwithstanding the difficulties of stocking up. The tenants who were interviewed expressed themselves as satisfied with their sections, and, given a year or two with the prices for stock and wool approximate to present market values, and fair seasons, there is reason to expect that the Flaxbourne Estate will be classed as prosperous. The men who have acquired holdings on the estate are just the sort wanted for the country, nearly all being experienced and with sufficient means to start. They had bad roads, bad weather, and difficulty in stocking to contend with at the outset, but these men have faith in the land and in themselves, and mean to make a success of it if possible. Henry Trent, Commissioner of Crown Lands. '•'

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