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Owing to the adverse climatic conditions, the yields from crops on light lands were very disappointing, but the heavier areas stood up to conditions much better. The yields of clover and other small seeds were generally good. The dairy-farmer has been seriously affected by the drought conditions, and production has dropped so severely that most of the factories will have to close down much earlier than usual and a big reduction in output is anticipated. The low prices received for fine wools and the depressed state of the market for surplus sheep have made conditions very difficult for the majority of sheep-farmers. The prospects for orchardists were excellent early in the season, but on account of lack of moisture at the critical stage much of the fruit has not sized up, and export is estimated at fifty-two thousand cases, which is about 20 per cent, below original estimates. It is pleasing to report that rabbits are definitely under control and on the decrease, and this improved position is principally due to the efforts of the several Rabbit Boards which have been formed during recent years. Owing to the dry conditions it has been impossible for many settlers to provide supplementary feed for winter, and many have already been forced to break into their reserves of hay. All applications for adjustment under the Mortgagors and Lessees Rehabilitation Act, 1936, have now been disposed of, as the Court of Review has now heard all appeals.

WESTLAND. (B. King, Commissioner of Crown Lands.) This district has experienced a very late warm autumn following on a very wet and cold spring and summer. As a consequence, production was hindered in the early part, and what is usually the flush of the season, but has picked up to a remarkable extent over the last three months. There is abundance of feed, and stock should be in good condition for the winter season. Lambs generally have not come away as well as usual owing to adverse conditions prior to Christmas, and with a general lowering of prices all round settlers have suffered a reduction in income from this branch of farming. Prices for store and forward cattle have been firm at a somewhat lower rate, and the graziers have had fairly successful sales of fat and surplus stock. The farming community generally is making reasonable progress with guaranteed prices for butterfat, and the season must be accounted a fairly successful one. All cases under the Mortgagors and Lessees Rehabilitation Act, 1936, have now been dealt with by the Court. It has been a feature of Court proceedings that in practically every case no attack has been made on the Crown rents, which are admitted to be assessed on a basis that inflicts little hardship on the Crown lessee. Remissions of arrears due to an accumulation over the depression period have been made in a fairly generous manner by the Adjustment Commission, and as a consequence many of the settlers have been given a new hope for the future. With these burdens removed, and a continuation of guaranteed prices for butterfat, there should be no reason why arrears should accumulate in future. It is generally admitted that the basis of successful farming in this district is the plentiful application of lime and fertilizers to the land, and the chief factor that discourages the more general use of these essentials is the high cost of delivery on the ground, especially in the southern areas. Unless means can be found for landing fertilizers on the farms at a more reasonable figure 'it is hopeless to expect any great increase in the productive capacity of much of the southern area. With the rapid extension of the Main South Road many inquiries are coming to hand regarding land for settlement at Jackson's Bay and environs. Though the provision of access to these areas must encourage closer settlement of available lands, it is necessary to remark that areas suitable for settlement in this part of the district are limited, and, in any case, no great extension of settlement may be anticipated before the land is cleared of milling-timber. The best land has been freeholded, and suitable Crown areas are limited in extent. In view of the undoubted interest the opening-up of this formerly isolated region will arouse in the touring public, much attention has been given to the setting-aside of scenic areas visible from and adjacent to the main route. There has been a sustained interest in land-settlement, as evidenced by the increased number of applications for land received during the year.

CANTERBURY. (N. C. Kensington, Commissioner of Crown Lands.) Settlers have generally had a difficult time in this district during the past year. Heavy rains in the late autumn and on through the winter made seasonal work difficult, and autumn-sown wheat suffered from the excessive wet. Following on the wet conditions a very cold and severe winter was experienced, heavy frosts were recorded with some heavy falls of snow, especially in the Mackenzie County. However, with the special care given during the trying time no heavy losses have been reported. On the lower lands there was a good deal of mortality owing to the excessive wet conditions, with lower lambing percentages, and fat lambs off the mothers have been below the average. Since the New Year very dry conditions have been experienced and rape and turnip crops have suffered, with corresponding difficulty in fattening lambs. The failure of rape and turnips has been most unfortunate, as there has been a very marked absence of the white butterfly this season, which

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