G.—lo,

Omaio. —On this schcme of 2,179 acres, located on the easterly coast of the Bay of Plenty twentyeight miles from Opotiki, no new work has been carried out, the areas already occupied by the nineteen settlers having been concentrated on. The very dry period from early December to March has affected the cream-supply. The scheme supports 187 people ; and the live-stock tally was 580 cows, 20 other dairy stock, 22 run cattle, and 100 dry sheep. Opape Farm— This property of 1,072 acres has now been merged with the Whakatohea scheme, three settlers with fifteen dependants having been established thereon. Orete. —Situated on the north-east coast of the Bay of Plenty, this scheme comprises an area of 4,774 acres, of which 2,6J9 acres are occupied by the twenty-six settlers who, with four workmen, support 197 dependants. No new areas have been developed, and the chief work during the year has been farm maintenance. The cream-supply from this schcme was also affected by the floods in the early part of the season. The live-stock consists of 1,000 cows, 35 other dairy stock, and 800 breeding-ewes. Orete No. 2 scheme, located sixty miles east of Opotiki, comprises 6,365 acres, of which 2,000 acres have been developed. The new work undertaken was 123 chains of new fencing with 100 chains of repairs to fences. The stock has done very well, the wethers coming out of the wool in good condition The heavy stocking with cattle has improved the pastures, but inadequate fencing militates against the successful grazing of the block. The stock at 31st March, 1939, comprised 921 run cattle, 832 breeding-ewes, and 2,241 dry sheep. Parekarangi Extension. —Further development work carried out on this scheme of 700 acres during the year comprised the ploughing and grassing of 90 acres and the sowing of 30 acres in turnips. There are now some 460 acres in grass, on which good work is being done by grazing with bullocks. There is ample work here for the two teamsters employed, and a further area of 180 acres to 200 acres will be turned over and grassed during the coming twelve months. This country is subject to ragwort, but, when necessary, a check is kept on it with sheep. Pukehina scheme, situated on the north and south sides of the main Whakatane - Te Puke Road, contains 590 acres. The project supports three settlers, three workmen, and thirty-two dependants. The dairy heard comprises 120 cows, while 45 other dairy stock are also being carried. Putaruru. —This property of 129 acres, on which two settlers with eleven dependants are running twenty cows, is located about four miles from Putaruru. Rotorua Nursery.—Eight men with forty dependants were engaged on this nursery of 30 acres, which is on the Taupo Road about four miles from Rotorua. The project continues to be a source of supply of trees for a large number of the development schemes in the North Island. Ruatahuna. —Situated in the valley at the head of the Whakatane River, in the heart of the Urewera Country, this scheme of 12,181 acres supports twenty-three settlers, forty workmen, and 138 dependants. An area of 3,500 acres has been developed to date. The live-stock tally at 31st March, 1939, was 1,611 run cattle, 1,552 breeding-ewes, and 935 dry sheep. Taheke scheme contains 9,081 acres, of which 8,000 acres have been developed, and is situated on the main Rotorua-Tauranga Road to the north of the Okere Falls. One settler, thirty workmen, and eighty-eight dependants comprise the population of the scheme. The live-stock tally was 785 run cattle, 2,546 breeding-ewes, and 1,562 dry sheep. Tihiotonga station, of 5,212 acres, is adjacent to Rotorua Township. The dependants oti the undertaking number 156, including two settlers and thirty-five workmen. The live-stock tally at 31st March, 1939, was 93 cows, 15 other dairy stock, 819 run cattle, 3,337 brceding-ewes, and 5,821 dry sheep. Tikitere : Waikato scheme contains 590 acres, on which five dairy-farmers have now been established and are milking 250 cows and running 62 other dairy stock. Waihi : Pukawa. —Gazetted only in February, 1939, this project of 8,265 acres is situated near Tokaanu. Whakatane.—An increase of one in the number of holdings on this scheme of 389 acres occurred during the year, and seven of the eight settlers are now milking and supplying the dairy factory. In addition to the herd of 113 cows, 74 other dairy stock were carried at 31st March, 1939. During the year three cottages and two cow-sheds were erected ; and the farm work included 337 chains of fencing and 91 acres of grassing. Whakatohea. This scheme, embracing 2,414 acres, and located eight miles from Opotiki on the Opotiki-Cape Runaway Road, now embraces Opape Base Farm of 1,072 acres which has been subdivided and settled as three farms, on which two of these settlers are milking large herds, while on the third milking will be commenced next season. Shortage of feed and water resulting from the extremely dry weather experienced, during the season has lowered butterfat production. Apart from the forty-two settlers' individual efforts, the work completed during the year by twenty workmen consisted of the stumping and clearing of 280 acres, the fencing of sixteen miles, the draining of three miles and a half, and the ploughing of 120 acres. The scheme supports 305 persons ; and the live-stock tally at 31st March, 1939, was 1,053 cows, 596 other dairy stock, 84 sheep, and 49 working horses. The details of the Opape Farm are given separately in the attached tables. Whakatohea : Wainui.— Situated eight miles from Whakatane, near the Ohiwa Harbour, this scheme contains 592 acres, of which 320 acres are occupied by three settlers, who are supporting nineteen dependants. The stock comprises 112 cows and 47 other dairy stock, One new cottage was built, and 232 chains of fencing were erected. Whangaparaoa is situated at the north-eastern extremity of the Bay of Plenty, and comprises 3,748 acres. No new development has been undertaken during the year. The season has not been a good one for production on accouni of the season being wet and cold in the spring, with the result that the cows did not come to their flush of milk until very late ; moreover, production was not maintained on account of the very dry weather after December. A good deal of cream was again lost on account of floods and wash-outs, the contractors being unable to get through to the factory. The scheme supports fourteen settlers and ten workmen, the dependants of whom number ninety-four. The stock carried consists of 650 cows, 20 other dairy stock, and 400 dry sheep.

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