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There have been • four new cheese-factories started in this district lately, and, as far as I can Learn, they have all excellent prospects, and are making the land for such purposes very valuable. The past year has, I think, been a fairly prosperous one, although many of the settlers on che poorer land have, 1 fear, a hard struggle to make a reasonable living off their holdings; but I am thankful to say the general tone has been one 01 , contentment and confident hope for the future. 1 may remark that since the passing of section 177 of the Land Act, 1908, which grants the light to holders of leases in perpetuity to acquire the freehold of the land comprised in their leases, 5,239 acres have been acquired, at a cost of ss. Id. : this includes the area in eight leases acquired this year —viz., 3,574 acres for £2,411 6s. Id. Jt is noticeable that this is some of the poorer lands of the district, the average price being L3'l3s. per acre, and the low pries lx?ing probably the inducement to purchase the fee-simple. F. Stkphenson Smith, Commissioner of Crown Lands.

WESTLAND. It is very gratifying to note the progress that lias been made in settlement in this district during the. past year not only in the mutter of the new areas selected, but also in the improvement of the position of the settlers, many of whom are now reaping the just reward of their labour in clearing and bringing into profit their bush-OOVered holdings. The grassing of bush land entails an immense amount of hard work and the outlay of capital, and settlers with small means find it difficult indeed to find the money necessary I'm , the improvement of their holdings and the maintenance of themselves and their families during the time that must elapse before they can obtain any return from their lands. In addition to the money required for improvements, more must be found for the purchase of stock, from which no immediate return is obtained. It is therefore necessaiy for settlers to a large extent to support their farms for souk , years by accepting any employment that may be offering, and, as employment is not always available in the locality, they must be absent from their holdings for part of the year. It is therefore very advisable that every consideration and encouragement should lie afforded them, and that the residence conditions should not be too rigidly enforced in cases where the intention of the lessees are shown to be bona file by the fact that they are sinking the whole of their surplus earnings in their holdings. This fact is fully recognized by the hand Hoard, and there is no doubt but that their leniency in dealing with such cases has been of great assistance to many s. ttlers who would have been compelled to relinquish their holdings had they been called upon to comply strictly with the conditions of their leases. As the land in this district is utilized mainly for the rearing and fattening of cattle, the returns for some years must be devoted to the purchase of new stock, and a much longer time must elapse before the proparties will show any available profit than in the case of holdings utilized as dairy farms. Speculation in land, and particularly in Crown leaseholds, has practically no existence, and it is therefore possible to relax the conditions to a somewhat greater extent than in districts where speculation is present. The means by which the maximum of profit can be obtained is by dairying, and settlers in several localities have at present under consideration the establishment of dairy factories; but this is, of course, impossible in localities where the land of reasonable quality is limited, or where the cost of carrying the products to the market allows a very small margin of profit to the producer. However, the matter of access-roads and bridges is receiving liberal tribution from the Crown, and the next few j'ears should witness the establishment of a number of new cheese or butter factories. Those factories at present in existence are showing very good returns, and a ready market at favourable prices is always offering for the whole of their products. The effects of the progress of dairying are already living felt by graziers, as the class of cattle bred by those engaged in dairying is not suitable or profitable for beef, and some difficulty is experienced in obtaining stores. There is always a good demand for store cattle, and several graziers are now devoting their attention to the supply of this demand, in preference to fattening for the market. On account of the moistness of the climate, and the consequent risks to agricultural farming, very little cropping is done beyond what is required to provide winter feed for stock, while the grazing of sheep is confined mainly to the river-fiats. The past season has been exceptionally dry, and the grass and crops on the heavier land have been very abundant, but the lighter lands have suffered somewhat; fortunately, however, the weather broke in time to revive the grass before the winter set in. In some localities the turnip crops were severely attacked by the fly, but the line summer and autumn tended to protect the potatoes from the blight, from which the damage was much less than of late years. Leaseholds of rural land on permanent tenures (exclusive of land-for-settlement holdings) to the extent of r>7.120 acres have been visited by the Crown Lands Hanger during the year, the improvements on these holdings totalling 1 16,038, which is £28,156 in excess of the actual requirements under the conditions of the leases. These figures supply ample proof of the confidence of lessees in their holdings. The different tenures contribute to these totals as follow : — „ Improvements required. Improvements effected. Tenure - £ s. d. £ s. ,1. Occupation with right of purchase -. 6,383 15 (5 11,877 0 0 Lease in perpetuity ... ... ... 8,986 0 0 25,530 7 0 Renewable leas,. ... ... ... 914 0 0 2,00fi 0 0 Regulations in mining districts ... ... 1,598 0 0 6,624 0 0