39

C—l

OTAQO. . During the past year no new settlements have been offered Eor selection. Of bhree allotments open Eoi selectioE .it the beginning of the year, a large section on Kauroo Hill Settlement was taken ii|). The transfers which bave taken place in reaped of settlement selections nave all shown consider able though not extravagant amounts for goodwill, thus giving evidence of the increasing value of settlement lands. The only selectors who nave taken advantage of the provisions of the Land for Settlements Act in respect of exchanging lease-in-perpetuity tenure lor renewable lease are the. tenants on Duncan Settlement, who thereby secured a considerable reduction in the capital values of their holdings, as well as the reduction from •") to it, per cent, on the capital values as rentals. Speaking generally as to the settlers under the Lands for Settlement \< tin Otago, they are making very steady and satisfactory progress, although they have been under the great disadvantage of an exceptionally dry summer. During the spring months things looked very promising. The frequent showers brought the crops away well, and there was every indication of a bountiful harvest with plenty of feed. During the early summer, however, prospects did not look quite so well, on account of a succession of hot north-west winds, which had the effect of giving the grain-crops and grass a decided set-back. The dry weather, with occasional high winds, continued throughout January and February, and entirely banished all hopes of the high returns which promised so well in the earlier part of the season. Strange to say, this state of affairs existed over nearly the whole of the Land District, Otago Central, as might be expected, being the worst affected, while north of the Kakanui the effects of the dry weather were not so apparent. South of the Kakanui, as far as Gore, crops of all kinds suffered very severely, as was proved by the threshing returns. It may be safely said that, taking the coastal districts of Otago all through, the crops have been quite 30 per cent, short of expectations. The same remarks also apply to the turnip-crops. As far as swede turnips ate concerned, they are practically a failure on account of the blight. Taking that fact into account, together with the shortage of farmers will no doubt find some difficulty in providing for their stock during the coming winter. In North Otago the usual area is under potatoes, but. on account of the dry season, the crops are not turn ing out as well as they promised; but growers are compensated to a certain extent for the smaller yield by the fact that the blight is not so bad as in previous seasons. With regard to the fat-lamb market, farmers are much better off than they expected to be. In the early part of the season fat lambs were selling at 10s., but before the season had advanced very far the price went up as high as 15s. a head. The suppliers to the dairy factories and creameries have also had the advantage of good prices, which compensated somewhat for the reduced quantity of milk. On Earnsclough Settlement, where the selectors are going in for fruit-growing, they are beginning to get a return for their labour, the Otago Central Railway enabling them to send their fruit in good condition to a profitable market. On Janefield Estate, which may be called a residential settlement, market gardening and dairying are being successfully carried on. a ready market for the produce being found in Dunedin. On the larger estates, the usual routine of mixed farming is carried on successfully. On the whole the settlers have had a good year and generally are well satisfied with their prospects as tenants of the Crown. E. 11. Wii.mot, Commissioner of Crown Lands.

SOUTHLAND. Lands opened during thj Year. During flu , year one new aettlemeni was purchased and opened to application viz., Ermedale. This settlement, containing a leasing area of 2,692 acres, is situated from five to seven miles from Fairfax Railway-station. It was subdivided into twelve sections, ranging in ana from 130 to 400 acres. On the day of opening nine sections were selectedj and one has since been taken up. leaving two. containing 548 acres, still unselected, hut lam confident that these will be taken up very shortly. As the sections were only allotted on the 31st March last, it is not necessary to make any further comments at present. Condition of established Settlemests. It is satisfactory to record that since last year steady progress lias been rnad< all the settlements, the improvements effected being increased by £5,000 since last report. For convenience of reference, the settlements may lie divided as follows: Western and eastern, tin 1 former comprising Merrivale. Otahu. Beaumont, ami Ringway, and the latter (ilenham and Kdendale. Generally speaking, the settlers in the western district are engaged in mixed farming and sheep-grazing, with a little dairying, while in the eastern district dairying is very extensively and successfully carried on. and forms the chief occupation. In the western district the white and green crops have, suffered somewhat lor the want of rain, and in consequence are a little poor, except on Otahu. where these crops are all that could be desired. An area of 1,266 acres has been laid down in new mass, and it is pleasing to note that the settlers are improving the stock-carrying capacity by this means. The high prices ruling for wool have created a feeling of satisfaction among the settlers in this portion of the district. The position of Otahu and Merrivale Settlements has been vastly improved by the completion of the Ore-puki-Waiau Railway to Tuatapere, which brings them much nearer the railway terminus. In the eastern district, as already mentioned, the chief occupation is dairying. Although the umss has not been quite so plentiful owing to thejeontinued drought, it is gratifying to know that there has been a great increase in the milk-yields. Realising whatjjthis means. , the settlers have put down no less than 2.1>20 acres in new grass during the year. All the milk-factories have been taxed to their utmost, and, to cope with the milk received, the chief factory at Edendale has been working