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Owing to the remarkable growth during the autumn —a season which has never been excelled in Southland—and the high price prevailing for " stores," most of the lands are considerably understocked, and it is difficult to keep the grass down. On account of existing war conditions prices of all products have increased —fat bullocks readily bring up to £25, fat wethers £2, and fat lambs £1 10s. The lambing is equal to last year, but it is considered that there are less ewes in the district. The wool-clip having been commandeered, the price has been fixed by the Government. The dairying industry in Southland is making rapid progress, and several new factories—both butter and cheese —have commenced operations. The price of cheese (also commandeered by the Government) shows a marked increase, and notwithstanding the tax on butter the dairy-farmers are doing remarkably well. A report on the grain prospects cannot be so reassuring. Owing, probably, to the scarcity of labour, the quantity of grain grown is considerably less than in previous years. The crops are light and the grain not well filled. This followed as the result of the dry spell at the New Year, the ears ripening fully a month earlier than usual. It is anticipated that the crops will show a decrease of about 20 bushels per acre from those of the previous year. The number of tenants on the books at the close of the financial year, principally through conversions to freehold, is nine less than the figures for the previous period, but the annual rentals payable show an increase of over £3,300. The gross revenue received, while a little short of last year's total, is much above the average, and exceeded the estimate. The land opened for sale and selection during the year amounted to 42,800 acres, and is about double that for the preceding year; but this is accounted for by the fact that two pastoral runs were offered, so that the number of selections does not show a corresponding increase. As all lands suitable will probably be opened for discharged soldiers, there will be naturally less land placed on the market for the general public during the coming year. To some extent the arrears of rent may be taken as an index of the prosperity of the tenants, and it is again satisfactory to note that the outstanding amount is comparatively a small one. A larger number of lessees and a greater amount of money, in comparison with last year, are shown in rebates for prompt payment of rent. The desire to convert holdings into freeholds is still maintained, and the number of conversions during the year show a slight increase, but the amount received was considerably less than last year. The work in connection with the administration of education endowments in this district is considerable, but all transactions are up to date. Over eighty expiries of leases were dealt with during the year, and the result is that the revenue payable shows a similar increase to that of last year—viz., nearly £600 per annum. The policy of the Land Board is to grant renewals where the lessee has no other land, or where the other land, together with the endowment, is just sufficient as a holding. In the other cases the leases are submitted at auction and the highest bidder is the purchaser. In some few cases the endowments have been dealt with under the provisions of the Land Act. This enables the Board to settle suitable and deserving applicants, but on the other hand the revenue may suffer through the leases not being auctioned. However, subdivision in many cases would be futile if such divisions were put to the hammer. There are nearly eight hundred education-endowment tenants, and out of an annual rental payable of over £16,600 only £16 is shown as arrears on this return. This is sufficient indication of theclassof tenant and of the prosperity enjoyed. Since 1911-12, during which time the administration has been in the hands of the Land Board, the annual rentals payable on these leases have increased by nearly £4,000. The season generally has again been a most prosperous one, and last year's general remarks might be reiterated concerning the prosperity of the province and the conditions prevailing amongst the farming community. i

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