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Hawke's Bay Land District. Kaheka Estate (10,048 Acres).' —Extensive development operations were continued during the year, when 1,589 acres were cleared of scrub and surface sown. Two hundred and forty-six chains of new fencing were erected and 80 chains of shelter plantations planted. Wethers numbering 2,647 were sold, the first draft of 1,443 averaging 67-7 lb. Kakariki Estate (19,288 Acres). —The chief development operations on this estate were the clearing of a further 50 acres scrub, the sowing of 332 acres in permanent pasture, the erection of 325 chains of new fencing, and the planting of 60 chains of shelter and timber belts. Other operations included the cultivation of 305 acres in oats, wheat, black barley, rye-corn, and swedes. Stock carried at the end of the year included 16,756 sheep and 998 run cattle. Parinui Farm. —This area of 1,044 acres is part of the Parinui Settlement. The whole of the manuka scrub on this area has now been cleared and approximately 30 acres stumped for cultivation. Farming operations were hampered somewhat by the dry season and the consequent low stock-prices, but nevertheless an improvement on last year's trading result was recorded. Waihau Block (963 Acres). —Vigorous development was continued on this block when an area of 315 acres of manuka scrub was felled, burnt, and grassed, 160 acres top-dressed, and 60 acres stumped. An implement and store shed erected mainly from timber from an old building has proved a distinct advantage. The wool clip amounted to 9,171 lb., compared with 4,023 lb., last year. Taranaki Land District. Development operations in Taranaki are confined for the most part to isolated areas which have proved unsuitable for closer settlement. The total area involved is approximately 7,403 acres, and while much of the area does not warrant heavy capital expenditure every effort is being made to maintain production as a contribution to the war effort. Marlborough Land District. Torode's Estate, an orchard a few miles out of Blenheim, continues to show very satisfactory results. Approximately 7,500 cases of fruit were disposed of to the Marketing Department during the year, but marketing restrictions prevented the sale of a considerable quantity of the lower-grade fruit. Improvements and plant have been well maintained, and the additional store-shed erected has already proved to be invaluable. Systematic attention was given to the orchard, which continues in good heart and reflects creditably on the capability of the Manager. Molesworth and Tarndale Runs (249,300 Acres). —The surrender of these pastoral runs was accepted in 1938, at which date the country was in a very deteriorated state and infested with rabbits. Large areas of winter country had been denuded of the natural covering, and sheet erosion had caused further damage. The Department, in an effort to rehabilitate the runs, has —except in a few small isolated areas —almost exterminated the rabbits. It was also decided to spell the runs, and, to afford the pasture every opportunity for recovery, sheep are not being run on the properties at present. Recovery on the shady faces and valley floors was rapid, and during the year the Lands Development Board, which had assumed control, decided to graze a limited number of cattle on these improved portions. It will take years for the properties to recover fully, but it is considered that, with judicious management and stocking, rehabilitation will eventually be effected. Canterbury Land District. Ashton Block, 703 acres, in the Ashburton County. The soil on this block is light and was infested with twitch, gorse, and brown-top when the Department took over. About three-quarters of the area is now considered to be fully developed, but the year's operations were somewhat disappointing as a result of the dry season. In response to the national appeal, an area of 25 acres of wheat was planted, but the spring-sowing of wheat is always somewhat hazardous, and results were below expectations. Brinklands Estate, 1,143 acres, in the Fairlie district. Although this area was purchased by the Department in 1929 it was only brought under the direct control of the Lands Development Board during the year. Some wheat was grown this year, but the property is used chiefly for sheep and cattle fattening, and the result of the year's operations was the best for some time. McKenzie Estate, 199 acres, near Geraldine. The development work on this area during the year was confined chiefly to draining. The property is now in fair order, and increased returns were shown from dairying in which this block is mainly engaged. Tripp Settlement. —Portion of this settlement was brought under the control of the Lands Development Board during the year. The total area concerned at present is approximately 490 acres and comprises mostly abandoned holdings. Th'e requires general rehabilitation, and a commencement was made with gorse-clearing, fencing, and constructing and clearing drains. As yet it has not been possible to establish a flock, and the property was used chiefly for grazing purposes.

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