G.—lo.

Live-stock 011 the scheme as at the 31st March, 1937, comprised 2,178 breeding ewes, 982 ewe hoggets, 72 rams, 189 wethers, and 323 beef cattle. For the period under review the wool-clip from 2,576 sheep totalled 26,210 lb. net, while 633 lambs were sold at £1 ss. 6d. per head. Since the inception of development operations, twenty-seven miles of fencing, 454 chains of draining, 46 acres of plantation and shelter-belts, 99 chains of river protection work, and considerable roading have been carried out. During the year the.work undertaken comprised 94 chains of draining, 84 acres of turnips sown, 160 acres of hay and ensilage harvested, 21 acres of oats harvested, 179 acres cleared and stumped, 760 acres top-dressed, 98 acres sown in grass, 327 chains of drain cleaning, 263 chains of new fencing. In addition, a sheep dip and yards were erected on the Waipapa section and sheep-yards built on the Hautu side of the Tongariro River. River protection work was effected and a reticulated water-supply for Waipapa section was installed. These activities provided work for 32 Natives supporting 102 dependants. Ten houses for the settlers on this scheme have been erected. At present this scheme is too isolated for dairying, but this will be made possible by the completion of the Taumarunui-Tokaanu Road now under construction by the Public Works Department. The present policy is to farm the land as a station and eventually establish some of the sections with sheep and others with cattle. T auranga-Taupo. Situated ten miles from Tokaanu, on the shores of Lake Taupo, this block comprises an approximate area of 2,789 acres, which is being developed as a scheme, although not yet formally gazetted as subject to the Act. The land consists of swamp, pumice hills, shingle fans, and areas of light sandy country which were probably old lake-beds. The light sand and shingle soil will tend to become dry in the summer and will be more suitable for sheep than for dairy cows. It is expected that the property, when developed, will carry three breeding ewes to the acre. During the year 456 acres were cleared, 272 chains of fencing were completed, 119 acres were ploughed and sown down in grass, and 100 chains of drains were dug. In addition, assistance was given to a Maori settler who has been farming in the locality for many years, and the work undertaken on his property during the season is included in the above figures. Te Kaha. This scheme, located at Te Ivaha in the Bay of Plenty, comprises a total area of 2,966 acres, of which 2,400 acres are suitable for development. There are now thirty-two settlers within the scheme, and of these, thirty are milking and supplying the local dairy factory. The number of persons dependent upon the unit holdings is 169, or 68 adults and 101 minors. The area in permanent and temporary pasture is now 1,327 acres, the area sown during the year being 222 acres. A fairly cold winter was followed by an early and mild spring, which accelerated pasture growth. A short spell of cold weather hampered growth, but the grass rapidly recovered and an ideal growing season followed. There has been an abundance of feed. With the extensive fencing work carried out and the closer grazing that is being practised there is a marked improvement observed in the quality of the pastures. Inferior grasses of the nature of ratstail and danthonia, which were prevalent in this area prior to the inception of development operations, are now being replaced by better varieties of grasses, and the careful handling of old cropped-out areas is resulting in the establishment of good pasture lands. The majority of settlers have saved one or more stacks of hay, but adverse weather conditions prevented the harvesting of a greater quantity of available grass. With the quantity of hay saved and rough feed, however, the stock should have ample winter feed. Instruction in hay and ensilage making is being maintained. Dairy stock withstood the winter season fairly well and, with the early spring growth, rapidly attained good production. At the end of the period under review all stock was in good condition and should winter quite well. Stock diseases, particularly mammitis, have been less prevalent this year. The settlers are benefiting from instruction given in the care and treatment of their dairy herds. There has been almost a complete absence of other diseases, and all stock appears to be in good health. Live-stock on the scheme as at the 31st March, 1937, comprised 30 bulls, 665 cows, 111 heifers, 112 heifer calves, 4-0 working horses, 44 working bullocks, and 18 steers. The grading of cream supplied by this scheme is relatively slightly lower than that of other schemes in the Bay of Plenty district, but there is evidence of improvement. The following gives particulars of butterfat supplied as at the 31st March, 1937, together with a comparative table for the previous year : —

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Yea, I T0^^ &t ! Total Value. Average pe, Cow. , | j lb. £ lb-1936-37 .. .. 76,297 3,176 506 j 150-7 1935-36 .. .. 57,937 1,842 381 j 152-0