C.—l

Further experimental work with bare areas and the establishment of strawberry clover and asparagus has been undertaken, and the results of last year's experimental cropping recorded. It has been shown that the soil is not ready to successfully grow farm crops excepting mangels. The two areas of lucerne did fairly well, two cuts being obtained before the dry summer set in. Further new roads have been constructed, the northern area has been completely dewatered and drained, and the whole area well subdivided into grazing-blocks. A new hay-barn has been erected, and water from two artesian bores piped to the whole of the southern portion. The stock wintered fairly well. The lambing percentage was 75 per cent., the low figure being due to the wet conditions and to the loss of lambs in drains. The cattle did well up until the summer, when sales were necessary owing to fescue poisoning. Since then most of the tall fescue on the southern end has been grubbed out. It is hoped to control fescue growth next spring by heavy stocking with wethers. The area in permanent pasture totals 343 acres, temporary pasture 508 acres, and area in crops 216 acres. Stock carried : Breeding-ewes, 3,424 ; wethers, 3,850 ; lambs, 472 ; rams, 113 ; cattle, 34 ; and horses, 3. Number of men employed on the development, excluding engineering reclamation, is thirteen.

Particulars of the Operations of the Small Farms Board in the Hawke's Bay Land District. Allotted Holdings: Where Settlers' Charges have been fixed.

Block in Course of Development in the Hawke's Bay Land District.

Nelson Land District. Pakihi Land-development, Sergeant's Hill, Westport. Rapid progress was made with development of this block, and pastures are established satisfactorily. Owing to the wet season haymaking was much retarded, and resulted in Lotus major almost taking charge, with Yorkshire fog also in evidence. Where pastures were systematically grazed they held well generally, but where any rank growth was permitted Lotus major took charge and appeared to smother the English grasses and clovers. The first farm unit was established during the year and was run as an independent holding. If, after a period of two to three years, success is achieved further similar farms will be established. The area commenced the season with thirty-four heifers coming into profit, and the yield was quite satisfactory and the test good considering the young herd. Next season should show a marked increase in production. Costs of maintaining pastures are still high, but it is hoped as the land consolidates that these costs will steadily decrease. On the balance of the development block dry cattle did remarkably well and some fine beef cattle were disposed of during the year. Over 340 head of cattle and eight horses are now grazing on the area so far developed and are all in splendid condition. Ample supplies of hay and ensilage were harvested and should provide sufficient winter feed for all stock. When the better-quality land is fully developed consideration can be given to the breeding of the replacement stock required. In the meantime, dry Stock only, with the exception of the first farm unit, is being carried. (Extract from report by Sir Theodore Rigg, K.8.E., Director of the Cawthron Institute.) During the past year excellent progress has been made on the pakihi development at Sergeant's Hill, Westport. In the autumn, 1938, a further 240 acres of pakihi land on Hateley's and Kelpe's blocks .were sown. The strike of grass and clovers on this area was very satisfactory, and good growth was made during the spring and summer. During the present season Morris's block, comprising some 300 acres, was drained, treated, and sown with grass and clover. With the exception of an area of sandy land facing Utopia Road, the whole of the proposed development covering nearly 1,400 acres has now been sown in pasture.

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Number I Amount of Amount of Estimated Block. j Area. of Rental Value. Instalment Current Stock carried. r , Holdings. | Mortgage. Account. Revenue A. R. P. £ s. d. £ s. d. £ s. d. £ Richmond .. 196 3 31-8 38 123 1 9 21,179 3 0 503 4 9 lid cattle, 2 horses, 752 15 sheep, 20 pigs, 762 poultry Karamu.. .. 103 1 22 19 291 15 0 9,567 5 5 305 16 11 45 cattle, 76 pigs, 904 153 poultry Individual holdings 680 3 17-6 12 324 7 6 425 0 0 4,098 18 4 176 cattle, 13 horses, 1,958 212 sheep, 29 pigs, 232 poultry

Number Sales - Block. Area. of e^ en esnfed. Wool. _ ! Cattle. Sheep. ployed. Bales. | Weight. Value. | Number. Value. Number Value. Acres. lb. £ s. d. £ s. d. £ s. d. Ahuriri Lagoon 7,753 13 7,859 sheep, 141 51,900 1,909 5 8 161 1,536 5 3 4,995 4,188 11 9 35 cattle, 3 horses