c.—l.

The lambing percentage was well in advance of any previous season and there was an increase in the production of butterfat. Although the amount of the arrears is still high, the brighter outlook has been reflected in the increase in receipts of the twelve months, the revenue showing an increase of about 20 per cent, on the previous year's figures. The question of arrears was tackled in a systematic manner and, where it was shown quite clearly that a lessee was doing his best and was only beaten by economic reasons, the Department has treated him generously. The adoption of pro rata agreements wherever possible has brought in a considerable amount of revenue.

WELLINGTON. (H. W. C. Mackintosh, Commissioner of Crown Lands.) The outlook at the beginning of the year under review was far from promising, and tenants, generally speaking, have experienced a very trying period. The poor prices obtained for farmproduce" during the previous year, particularly for wool and fat stock, left the farmer no reserves to face another year of uncertainty. The wool-sales, however, opened with most encouraging prices, and the outlook for the pastoralist has become appreciably brighter. The dairyman, on the other hand, is having a very lean time and his returns will pay little more than working and living expenses. Climatic conditions in most localities have been very favourable and stock came through a comparatively mild winter to the spring in good condition. Rain fell in sufficient quantity to maintain a good growth of grass, so that in the majority of cases plenty of hay was saved for winter feeding. It was no uncommon sight in some districts to see portions of haystacks left over from last season, indicating mild winter conditions. In some localities, however, particularly in southern Wairarapa, drought has again been experienced. Droughts occur in this district so consistently that one is forced to the opinion that the area is not one where dairying can be carried on with ultimate hopes of continuous success. Butterfat opened at prices which augured a favourable season, but the pay-out was not maintained and the figure in many cases dropped to 7d. and Bd. per pound. Not only is the dairyman unable at this price to anything like pay his way, but he is also not in a position to provide necessary manures for his pastures. In order to meet the position, the Department has granted concessions by way of partial remissions of rent or by waiving payments of proportions of milk cheques for a period," so that settlers might be able to provide the required top-dressing. The revenue for the year shows a marked improvement, and it is gratifying to be able to report an increase of almost £60,000 over last year's figures.

NELSON. (A. F. Watebs, Commissioner of Crown Lands.) The season 1933-34 has been the driest that Nelson has experienced. Districts with a westerly aspect had a moderate share of rain, and drought conditions were practically confined to the Waimea County. Two summer frosts did considerable damage to fields of tobacco in certain localities, but, fortunately, as a whole, the crop was not seriously affected. Sheep-farmers were elated at the sudden recovery of wool-prices when fine wools reached high prices. Coarser wools improved considerably, but did not meet with the same keen demand. Store sheep have sold well and lambs have realized 17s. 6d. to £1 for good quality. The dairy industry is passing through a critical period, prices on the London market falling to 68s. per hundredweight for finest butter. This means in many cases that the product is hardly returning the cost of production, and will have the effect of discouraging dairying on much marginal land. Many sheep-farmers who started dairying to lielp them over the slump in wool are discarding cows and building up their flocks. Orc.hardists have experienced a favourable season as was expected after an off season. The exceptional dry spell has kept the fruit rather small, but free from blemish, with the result that a high percentage has graded up to extra fancy standard. There is every prospect of a record export. There is a good sale for an unrestricted quantity of hops this year at remunerative prices, with every prospect of the market remaining firm. Tobacco-growing is still bringing a considerable amount of money into the district. Some of the manufacturing companies are limiting their purchases on account of diminished consumption. The work in connection with unemployment-relief schemes has considerably increased during the year, farmers taking advantage of the 50-per-cent. subsidy to fell bush, erect fencing, and generally effect necessary improvements.

MARLBOROUGH. (P. R. Wilkinson, Commissioner of Crown Lands.) The climatic conditions over the past season have again been very adverse, and the greater portion of the district has now had its fourth consecutive dry season. The rainfall at Blenheim over the period under review was only 14-57 in., as against the average of 27 in., the past season being the driest since 1915. The winter was fairly dry and mild, but with enough rain to keep pastures moving, and the anticipated shortage of winter feed did not eventuate, and stock came through in good condition. Early spring conditions were good and lambings were very satisfactory. Enough rain fell up to October to bring the grass and crops away, but, unfortunately, the rains were not nearly enough to replenish the missing "sub-soil water (the result of the three proceeding dry seasons). Light rains were

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