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The general outlook has greatly improved owing to the improved prices for wool, sheep, and dairy-produce. Eleven farms under both headings liavo been abandoned, and steps are being taken to have them revalued and reoficred. The Board of Inquiry appointed to inquire into the position of soldiers' farms is actively proceeding with its work. The greater proportion of the soldier settlers are doing their best to work their farms and meet their engagements, but as time passes it is evident that here and there are some that will be unable to make a success of their holdings, partly from lack of experience and capital. In pastoral farms the incubus of loss over stock purchased at high and sold at low prices is still felt, and further help is being refused to some financed by companies who have lost or stand to lose considerably by them. Some of the land in the settlements and on the farms had evidently been somewhat overcropped, and this has been a little accentuated by many soldiers trying to grow more wheat than desirable on the class of land held by them ; and this year, when some could have done well with sheep, as the season has been favourable for grass, they are without them, as the price of store sheep at one time left no margin of profit with risks considered. Turnip crops on some of the settlements this year are a failure. In common with other farmers, soldiers must learn to farm on a system of rotation suitable to keep their land in proper heart, and not be led away too much by the prospect of immediate gain, very often made to the detriment of future results, and sometimes not made at all. Under the past circumstances of high land and stock values it is satisfactory that the position is as it is, and that a comparatively small number of farms have been abandoned to date. A few more will have to be resumed where the men appear to have little or no chance of surmounting their liabilities, but already many of the triers are in better heart, and experience gained will stand them in good stead. Curiously enough, here and there are very successful settlers with very little previous experience, alongside other unsuccessful ones with a life knowledgo of farming. It is considered in the case of some abandoned settlement lands that the better policy will be to add the holdings to those of the adjacent men where the country is of a light nature, which should be more used for soiling-crops for sheep-farming and less for growing white crops. The soldiers on pastoral lands have had a good year, as also those on dairy farms properly managed. In a few cases, on dairy farms, contagious abortion has caused loss, and there are a few others where lack of energy is to some extent responsible for trouble. Twitch is still plentiful on many of the arable farms, and in some parts Californian thistle is giving trouble. On farmlets used for market-gardening, orchards, or poultry, success, so far, is only moderate. The unsuitable are being gradually eliminated in various ways, in some cases by selling out or transferring to others. In poultry-farming it is hoped that an export trade can be worked up and prices thus improved. Arrears, as is to be expected, are still high, and there is a little reason to think that some are withholding payments to see the result of the Board of inquiry's inspections. Many men who at the boom-time complained vigorously that the Board was too slow in acceding to their requests to have farms purchased are now blaming the Government for putting them there ; it is also evident that the fact of a man having his own money in a place makes for the more energetic working of it. The high arrears are due in some cases to companies haVing liens on crops and stock declining to meet, or only meeting very slowly, rental liabilities for soldier clients. This position will need careful consideration, and in some cases decisive action. The Board has extended every leniency to men thought to be trying their best. In some few cases this leaves the way open for imposition, and is not always properly appreciated either by the soldier or his creditors. On the whole the more competent soldier settlers are benefiting by past experience, and with reasonable concessions are likely to win through. Advances for house-building are still being dealt with and made. The cost of building is lessening owing to the cheapening of hardware, and to a small extent of timber, but still seems higher to a layman than it should be, whatever the causes are. Mortgages have been paid off from a number of dwellings. The Supervisor and rangers have been kept very busy, and with a small staff it is a very difficult matter to keep a proper supervision over securities, and ordinary land-inspections can only be attended to in urgent cases. Improvements are generally well ahead of requirements, and there are very few behind with them. Only one settlement, Avonhead No. 2, divided into sixteen holdings of about 9 acres, was offered during the year. The tenants seem a good lot, and only one section of 4 acres remains unselected. One abandoned run has been reselected by a soldier settler. Otago. (R. T. Sadd, Commissioner of Crown Lands.) No land has been acquired for the settlement of discharged soldiers during the past year, partly on account of there being very little demand for land, and partly because there are still large areas purchased for discharged soldiers not disposed of. The rise in the price of fine wool has made a great difference to the pastoralist, and although the coarser and inferior wools have not risen to any great extent, still there is an upward tendency. The price of lambs and sheep has also risen, but the price of cattle is still rather low. The price of butterfat has fluctuated considerably, and on the whole the price has not been good, and in consequence the dairy-ftirmers have not been very successful. Several settlers who acquired farms under section 2 of the 1917 Act have had to abandon their farms, and it has been necessary to realize on the stock and chattels ; and, as the price of stock