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REPORT OF DIRECTOR-GENERAL OF AGRICULTURE Despite the expansion in recent years of secondary industries, the economy of New Zealand is still based essentially on primary production. The Dominion is an important contributor to world food-supplies, particularly those of the United Kingdom, and in view of our undertakings to increase exports during the currency of our long-term contracts New Zealand's post-war agricultural policy is of considerable importance. A review of farming trends since 1920 may assist in assessing our productive resources and guiding future policy. The year 1920 has been selected as it marks the close of one epoch in New Zealand's farming history and the beginning of a new. Up to 1920 the main characteristic of farming development was its extensive nature. Land was plentiful and increases in live-stock numbers were made possible by acquiring and breaking-in new land. Since 1920, however, there has been relatively little expansion of the area occupied, but a much more intensive development pf the land already being farmed. It is from a continuation and intensification of this latter trend that, in the main, increased carryingcapacity can be achieved and future production increases must come. Since 1920 there has been a progressive increase in the volume of live-stock products, as is illustrated by the following tables :

Table I

Increased Carrying-capacity The intensification of farming is best illustrated by movement in stock-carrying capacity. Although, exact measurement is not possible, the adoption of live-stock and acreage equivalents gives a measure which can be adopted for comparative purposes. In the following table sheep and cattle of all types are expressed as " cattle units " and grazing land as " grass equivalents." The result shows, on this basis, that carryingcapacity has increased from 38-8 to 50-3 per 100 acres since 1920.

Table II —The Relationship of Live-stock Carried as Cattle Units to Area Farmed as Sown Grass Equivalent

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Butterfat Wool Live-stock Slaughterings (000 Carcasses).i Pounds).f Sheep. Lambs. Cattle. Pigs. Calves. 1919-20 60,600 174 3,190 3,281 413 201 1929-30 140,200 273 3,992 6,652 367 530 1939-40 194,900 310 4,439 10,160 600 826 1 jo60 1944-45 192,000 372 4,717 10,780 610 679 966 1945-46 164,400 365 5,440 12,741 739 728 983 1946-47 181,200 360 5,037 11,808 719 633 1,085 1947-48 188,000 357 4,640 12,373 712 638 1,174 * Years ended 31st July. t Years ended 30th June. t Years ended 30th September.

Live-stock as Areas as Sown Cattle Units Year. Cattle Units Grass Equivalent Per 100 Acres. (000's). (000 Acres). 1920 6,908 17,802 38-8 1925 7,190 18,170 39-6 1930 8,233 18,770 43-9 1935 8,530 18,581 45-9 1940 9,336 18,733 49-8 1945 9,368 18,791 51-3 1947 9,670 19,233 50-3