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pound of butterfat for good grades was paid ont, but later on in January this dropped to Is. Id., recovering to Is. 3d. later. These prices, being only for first-grade stuff, will not be averaged all round. Cows were in poor condition in the earlier part of the winter, but the mildness of the season helped them. Earlier spring was rather dry; the later rains improved the growth of feed for a short period, but during February and March the lack of rain and prevalence of drying winds again caused yields to drop, making the season short and not as profitable as it might have been. Growers of stone-fruits did not have a very successul year, brown rot being prevalent. Good crops of apples have been obtained in some cases, but several heavy gales must have done damage in some parts. Market-gardeners and tomato-growers have experienced fair conditions, and results should average fairly well. Poultry-farmers are still in the struggling stage, and, while grain-growers are complaining of insufficient prices, the poultrymen are saying that grain and other feed are too dear for them to run their industry at a profit. There seems to be a probability of an export trade being worked up and helping to secure for them firmer and better prices. Landholders generally are increasing their efforts to grapple with the rabbit pest. As before, the Land Board work has continued to be heavy, and several supplementary meetings have been necessary. Revenue. —Arrears show an increase, but after the better seasons the Board is not inclined to lend so sympathetic an ear to defaulters. The revenue collected from Crown tenants, : n spite of adverse conditions in some cases, resulted in the very satisfactory amount of £268,476. Land selected. —During the year seventy-six new selections were taken up, comprising 15,246 acres, with a total rental of £1,961. The Field Inspectors are still kept very busy, and it has notbeen possible to attend to ordinary statutory inspections and keep as good an eye on reserves as could be wished. OTAGO. (R. S. Galbraith, Commissioner of Crown Lands.) The year just ended has been one of steady progress by the settlers throughout Otago. The weather conditions on the whole were good, a mild winter being followed by a good growing spring and summer. The rainfall was scarcely sufficient, and the effect was more marked in the southern than in any other part of the district. In north Otago the grass was early and very good, especially north of Palmerston ; south of that town it was later in coming away, and as the summer advanced it suffered a little on account of insufficient rain. The oat crops about the Oamaru district showed plenty of straw, but in some cases did not thresh out to expectations. Wheat crops in the same district were barely up to the average, but some very fine samples of wheat came on the market. Root crops were average, while rape and other green feed proved to be very good and stood a lot of eating-off. In Central Otago, where most of the land is used for grazing, the pasture came away well, and sheep from the hills were in better condition than has been the case for some years past, with the result that the wool-clips were good and clean and lambing percentages high. Irrigation is having a most important effect on sheep-farming in localities where water is being utilized. Development of this work is being vigorously pushed on by the Public Works Department, and the results already achieved justify the opinion that in a few years' time the sheep-carrying capacity of Central Otago will have increased enormously. One large sheep-farmer, who is, perhaps, the pioneer of irrigation, openly proclaims his belief that one acre of irrigated land is equal to twenty acres of similar unirrigated land. This may be an overstatement of the case or it may not; certain it is, however, that the increase in production due directly to irrigation is very great, and is reflected in the market price of sheep farms and runs. In southern Otago the rainfall was not sufficient to give the best results in cereal and root crops, although some very fair crops of turnips were produced. In one or two localities swede turnips were affected by blight. Up to November the growth of grass was good, but from then on to March very little growth was perceptible. Good rains fell in March and stimulated the growth to a marked degree. An inclination on the part of dairy-farmers to dispose of their herds and go in for sheep is manifesting itself. The causes are not far to seek. One of them, however, ought to be mentioned—the spread of ragwort in the bush country. Blackberry is also spreading to some extent, and it is sincerely to be hoped that this weed will not be allowed to take possession of any appreciable area of country. The area of land opened for selection during the year was 25,236 acres, the most important offering being the pastoral country on what was the well-known Teviot Station. This country was eagerly competed for, there being seventy-one applicants for the six lots offered. The total number of new selections made last year was 171, with an area of 137,565 acres. These figures show an increase of twelve selectors over the number for the previous year, with a decrease in the total acreage selected. The number of freeholds acquired was exactly the same as that of the preceding year, although the area made freehold was slightly larger. It is pleasing to be able to record that the figures with respect to arrears of rent are much lower, both in number of tenants and amount outstanding, than was the case for the 1924 period. The work of the Land Board was heavy, the outstanding feature being the large number of applications to transfer that came up for consideration. Large sums for goodwill, particularly for pastoral properties, were disclosed, rendering it necessary to scrutinize such transactions very closely. I am much indebted to the Board members for their valuable advice, great assistance, and loyal co-operation.