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LAND-DEVELOPMENT UNDER THE LAND LAWS AMENDMENT ACT, 1929. Considerable progress can be recorded for this scheme during the year, the Lands Development Board which administers the Act taking over the control of a further 260,855 acres. The greater part of this area was the Molesworth and Tarndale Stations in the Marlborough and Nelson Land Districts, but as the rehabilitation of this area is largely dependent on the spelling of the land progress will necessarily be slow. The Te Wera Estate of 9,922 acres in the Gisborne Land District, although previously developed under another statutory authority, was also placed under the control of the Board during the year. The net expenditure on development on all blocks during the year was £29,104, and the total value of produce sold was £81,735. This shows an increase in production of £22,749 on the previous year._ The demand for more production created by the war position will be an important factor in farming operations in the incoming year, and every effort is being made to assist in this direction. The othex important phase of the Lands Development Board's operations is the assistance made available to Crown tenants by way of loans to enable them to develop their properties. Advantage continues to be taken of this form of finance, and, since the passing of the Act in 1929, 604 settlers have received assistance involving loans totalling £273,669. This money is advanced for development purposes only, including the purchase of live-stock, the maximum amounts obtainable being 90 per cent, of the value of the contemplated improvements and 60 per cent, of the value of stock. The soundness of this method of finance is amply demonstrated by the fact that the total loss of capital to 31st March, 1940, amounts to only £10,224. This amount includes £2,088 written off mortgage principal by the various Adjustment Commissions set up under the Mortgagors and Lessees Rehabilitation Act, 1936. The loss represents approximately 3-75 per cent, of the total capital advanced, and fully demonstrates the soundness of this method of finance. Particular emphasis is given to this fact when it is recalled that the past decade, at the commencement of which the scheme came into operation, has been one of extremely unsettled and varying farming conditions. Pursuant to section 10 of the Land Laws Amendment Act, 1929, the following summary of operations during the year ended 31st March, 1940, is recorded :— (a) The Several Areas op Unoccupied Crown Lands in respect op which Development Works have been undertaken during the Year. North Auckland Land District. Kapiro Block (12,000 Acres). —Before embarking on large-scale development the Department decided to experiment on small areas as the soil is of a heavy ironstone content, inclined to be open and deficient in humus. Results so far are only fair, and it is too early yet to decide whether development operations should be extended to a more extensive area. Battens Block (1,524 Acres.) —Development operations on this block were confined chiefly to the sowing in grass of an area cleared of scrub last year. This enabled the carrying-capacity to be increased, and a steady increase in production from the Block may be anticipated. Auckland Land District. Galatea Estate (22,326 Acres).—-Farming methods are dictated by local conditions in this district, and where this has been allowed to influence operations results have been quite satisfactory. Knowledge and experience is being gained from year to year, and the dairying returns obtained on some of the share-farms on the estate encourages the belief that this industry will eventually be successfully established. On the station portion of the area the year's operations were confined chiefly to the extension of water-supply schemes and to the consolidation of pastures already established. Considerable new areas were also cultivated and sown in grass. Gisborne Land District. Te Wera Estate (9,922 Acres) was purchased by the Department in 1927, and development and farming operations have been carried on since that date. During the year considerable areas were stumped and ploughed for laying down in permanent pasture next year. During the past three years considerable attention has been paid to top-dressing and the use of stock-licks, with the result that both pastures and stock have greatly improved and wool weights and classes improved.

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