G.—lo.

Waiapu-Matakaoa. This " blanket " scheme consists of a number of small blocks in nowise connected except that, for convenience of accounting, they are grouped into one control account. Situated in and around Tikitiki and Ruatoria, near the East Cape in the two counties from which the name is derived —namely, Waiapu and Matakaoa —and embracing an area of 12,350 acres in which are included the tribal lands of the Ngati-Porou people, the block is being farmed by some 81 units with 479 dependants, while 4 new units are to be recommended for assistance this coming year. The people are mostly engaged in dairying, and a greater proportion of the farms comprise rich river-flats which, however, are subject to occasional floods and in places erosion. The aggregate of the developmental activity on the scheme for the year under review was as follows : 650 acres sown in grass, 175 acres of clearing, 1,360 chains of new fencing, with 640 chains of repairs to fences, 60 chains of new drains, and the erection of 17 houses and 10 cow-sheds. Particulars of the tallies of live-stock as at the 31st March last and the proceeds therefrom during the past season are enumerated hereunder : 7,924 sheep, 1,439 dairy cattle, 276 run cattle, and 71 horses. Receipts : wool-clip of 155 bales realized £1,575, stock sales amounted to £3,790, and the departmental receipts from butterfat were £1,106. Brief surveys of the state of development on the larger stations included in this area are as follows :—< Toetoe. —Extending from the coast at a point approximately half way between Te Araroa and the East Cape up the eastern bank of the Oruatua Stream for distance of nearly three miles, this property consists of good soil, and has a plentiful supply of water. The year's operations included the cutting and burning and sowing of 150 acres of light bush and scrub land, and two miles of new fencing were erected. The stock as at the end of the year included 1,900 ewes, 1,000 lambs, 150 rams and wethers, 150 station cows, 37 heifers, 60 calves, and 4 bulls, while the sales of stock returned £1,600. Kaiwaru. —This section is situated on the western bank, south of the confluence of the Oruatua and Wiiti Streams. During, the year 209 acres have been felled and grassed, making the area now in pasture 325 acres. In addition one mile of new fencing was erected, and further bushfelling is contemplated for this coming winter. The live-stock tally was 287 ewes, 10 rams, 29 steers, while the sales of live-stock produced £285. Marangairoa la, 2, 3, and 4. —Located nearly three miles south from Te Araroa on the eastern bank of the Awatere River, and comprising 494 acres, this section is worked as a sheep-station, with the exception of two or three areas of about forty acres each whereon the owners are dairying. The property is too steep for dairy-farming on a large scale. The stock at present being wintered on the station consist of 476 ewes, 228 lambs, 15 rams, 90 cows, 50 calves, and 3 bulls. The stock sales produced £466. Tapatu Waitangirua 2v,. —Situated in the Te Araroa district, and. extending over an area of 695 acres of good sheep and cattle country, this property is at present carrying 700 ewes, 550 lambs, 70 cows, 2 bulls, and 35 odd weaners, while sales of live-stock produced £622. At the time this section was included in the scheme in 1931, 210 acres of it had been cleared and grassed, since when the balance has been felled and grassed. The necessary fences and sheep-yards have also been erected. The progressiveness of this unit is exemplified in the fact that he was able to liquidate his indebtedness to the Department during the past year. Section 5, Block VIII, Mangaoporo Survey District. —Located eight miles from Tikitiki, up the Poroporo River valley road, and comprising 574 acres of fairly easy hills, of which about 300 acres are in English pasture (bushburn), the balance being in Native grasses, this property consists of good warm country fenced into four main paddocks and two smaller ones. The stock depasturing on the station at present consist of 940 ewes, 15 weathers, 700 lambs, 25 rams, and 128 dairy cattle ; the season's stock sales having realized £403. Section 10, Block VIII, Mangaoporo Survey District. —This property is managed by a capable farmer who has practically cleared off his liability to the Department. Adjoining the above-mentioned station, it comprises 258 acres of easy hills, now all in grass with the exception of shelter clumps. Inkweed is very prevalent, and fences are rather difficult to maintain as slips are frequent. The stock at present being carried consist of 440 ewes, 275 lambs, and 56 weaners, and the season's realizations from sales were £413. Remainder of Waiapu-Matalcaoa Scheme. —Comprising Tikitiki, Pahooterangi, Hinetiraha, Hahou, and Toetoe holdings, there are seventy-seven units established on this portion, all of whom are engaged in dairying on areas ranging in extent from 12 acres to 225 acres. These areas were carrying 1,100 head of cows and heifers. The larger sections are not yet fully developed, but generally they are making reasonable progress, and it is gratifying to record that the prospects for the coming winter are much brighter than for the same period last year. Poroporo. Some eight miles inland from Port Awanui, on the main East Coast road just north of the Waiapu River, the Poroporo scheme of an area of 5,449 acres of extremely fertile land is located. When this scheme was taken under development in the early months of 1930, it consisted for the most part of bush lands, with several slopes covered in fern and manuka. In the course of the subsequent two years, the bush was felled, grassed, subdivided, and fully stocked.

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