G.—lo.

One settler is at present established, this scheme having only been gazetted on 14th February, 1937, but an additional area of over 800 acres adjoining the land already under development has been submitted for inclusion, but various intricate legal difficulties have held matters up in the meantime. t The area on which the unit is concentrating has approximately 60 acres in grass, the balance being in light heather and scrub on the undulating to hilly section of the country. Ragwort has a strong hold, necessitating the purchase of sheep in the near future to be run in conjunction with the cows. The carrying-capacity will be 2| sheep per acre or one cow to 2 acres. Onewhero. This " blanket " scheme comprises thirty units in six groups scattered across the northern portions of the Raglan and Waikato counties, and each group presents a separate problem in farming, the and type of Native being different in each case. The following remarks give a general description of each area : — Onevjhero (Proper). This section is situated about five miles from Tuakau, and comprises 720 acres of both low-lying and volcanic land on the banks of the Waikato River. There are ten settlers established, and considerable draining works have been undertaken during the year. A new water-supply is nearing completion and should prove a great benefit to the better class of farming land in this area. Housing conditions generally show improvement, but there are still a few cases where betterment is needed. Opuatia.—Located fifteen miles from Tuakau and comprising some 1,380 acres, this area is of papa and semi-gum land. Ihe land is poorly watered, but it is understood that power-lines will be running past most of the farms in the near future, and if water can be obtained from bores with the use of electric pumps it should go a long way to improving the returns of the eight farmers who are in this area. Mercer. It has been previously reported that blackberry was a serious menace for the one settler in this locality, but this problem is now well under control. ' The unit is making excellent progress on his farm, which has an area of 51 acres. Mangatangi.—Seven farmers are established in this locality about twelve miles east of Pokeno. The soil consists of good-quality loam, and, generally, the pastures are particularly good. Splendid work has been done here in checking the spread of blackberry. Koheroa. There are two sections in this locality, which is composed of poor quality gum land about eight miles north-east of Mercer. Only one unit is active, however, and he has done fairly well. Waikarakia. —This is an area of 1,073 acres of heavy clay flats and gum land hills. There are at present only three active units in the locality, which is eleven miles east of Mercer. These three farms total an area of 277 acres of the best land, and are well managed. General.—The total gazetted area is 4,642 acres ; the area developed, 2,900 acres ; while the further land estimated as suitable for development is approximately 1,000 acres. The number of dependants on these sections is 193 persons. The live-stock tally as at 31st March last was 49 horses, 61 pigs, 29 bulls, 718 dairy stock, of which 573 cows were in milk at the flush of the season. The receipts for the past year were as follows : 101,257 lb. of butterfat, which produced £5,877, two-thirds going to the units, and one-third to the Department, while cattle sales amounted to £142. The summary of the year's general farming activities are as follows : 20 acres of bushfelling and clearing ; 67 chains of new draining, with 60 chains of cleaning of old drains ; 12 acres of grassing ; 30 acres of ploughing ; the splitting of 600 posts ; the harvesting of 16 acres of hay ; the alterations to 2 cottages and the building of 1 new hut. Oparure. Comprising 602 acres around Te Kuiti and Oparare, of which 470 acres are under development, this scheme has two settlers who are successfully farming with sheep and cows, but the efforts of the third unit to control the growth of gorse and blackberry are somewhat disappointing. It is desirable to bring this scheme into the Waitomo development area, and representations to this effect will be made during the ensuing year. Of the original five units, two have paid off their loan accounts and no further assistance will be required. The scheme, as at present constituted, supports thirty-three dependants belonging to the NgatiKinohaku and Ngati-Rora tribes. The work carried out during the year comprised : 75 acres of clearing and bushfelling ; 110 chains of new fences ; 11 acres of ploughing ; the splitting of 400 posts, 2,200 battens, and 4 strainers ; together with additions and alterations to 2 cottages. The livestock carried by the units as at 31st M,arch last was as follows : 33 cows, 10 other dairy stock and 220 ewes. The cash receipts for the year were : Butterfat, £263 gross from 5,862 lb. ; £71 from 1,2501b. of wool; and live-stock sales, £300.

20