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5. EMPIRE MARKETING FUND.

In 1926 a sum of £3,500 was advanced to the Board from the Empire Marketing Fund in aid of the cost of schemes of Research into the Mineral Content of Pastures, and into Dietetics, which are being undertaken by the Rowett Research Institute, Aberdeen. Expenditure on these schemes in the financial years 1926 and 1927 is estimated at approximately £15,000, and will be met by grants from the Empire Marketing Fund.

6. ADVANCES FROM THE DEVELOPMENT FUND.

The following expenditure was defrayed out of grants made to the Board from the Development Fund during the financial year 1925-26, viz. :

For Extension of Milk Recording

For Research in Animal Breeding

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For Breeding Experiments with Merino
Sheep
For Research in Plant Breeding, including
the Virus Disease Experiment

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For Advisory and Local Investigation Work
For Maintenance of the Rowett Research

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£3,080 0 0 1,000 0

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999 10 5

1,177 15 8

6,168 8 5

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Institute
For Capital Expenditure at the Rowett
Research Institute Experimental Stock
Farm
For Maintenance Expenditure of the Animal
Diseases Research Association
For Research Scholarships, Travelling
Fellowships and Representation of
Agricultural Science at International
Conferences

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For the Development Work of the Scottish
Agricultural Organisation Society
For Scottish Women's Rural Institutes

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17,600 0 0

2,300 0 0

1,041 11 0

3,970 0 0

34 10 0

112 15 1

1,605 17 2

cultural Science The accounts relating to this expenditure are published in the Appropriation Accounts for 1925-26, pp. 259-61.

Grants from the Development Fund were continued in 1926 for all purposes for which assistance was given from this source in 1925-26, with the exception of the Survey of Rural Industries.

II. ESTABLISHMENT.

The temporary technical staff engaged on work of land settlement was reduced by six officers during the year.

With a view to providing a more convenient centre for the work, the Board's Estates Office for their Western Islands properties was transferred in November from Uig, Skye, to a new

building at Portree. A scheme of re-organisation of the staff of the Estates Office was put into operation during the year, with the approval of the Treasury.

The work in connection with the enquiry into Agricultural Production in Scotland, undertaken at the request of the Board of Trade in connection with the Census of Production, 1925, was continued during the year with a reduced temporary clerical staff, the cost of which is refunded by the Board of Trade.

The following statement shows the average numbers of staff employed by the Department during the last five calendar years :

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SMALL LANDHOLDERS (SCOTLAND) ACTS, 1886-1919, AND LAND SETTLEMENT (SCOTLAND) ACTS, 1919 AND 1921.

During the year the Board received 500 new applications for small holdings and 80 for enlargements of existing holdings, the former number including 268 applications from ex-service men. The number of fresh applications received by the Board from year to year more than equals the number removed from their lists by the settlement of applicants or otherwise. At no time since 1916 has the number of applicants on the Board's lists been less than 9000, and at the end of 1926 the number was 10,288.

Appendix No. 1 gives a detailed summary of the applications received by the Board since 1912. The total number of applications received is 22,124; 6967 of these were subsequently withdrawn by the applicants and 4761 have been satisfied by the settlement of applicants. The latter figure includes 325 applicants settled on holdings vacated by the original tenants. The number of new holdings and enlargements actually constituted by the Board since 1912 is thus 4436.

During the year under review 148 new holdings and 47 enlargements of existing holdings were formed by the Board and 68 applicants obtained holdings formed in previous years and subsequently vacated, the total number of applicants settled during the year amounting to 263, of whom 156 were ex-service

men.

In their last Report the Board referred to the difficulty experienced in confining the selection of tenants for available holdings strictly to ex-service applicants. During the past year they received authority to modify to some extent the preference hitherto accorded to ex-service men, and schemes are now being

projected which will include a number of "civilian " applicants in addition to ex-service men. In selecting tenants, the choice is made solely according to the merits of the applicants, but a preference will still be given, other things being equal, to exservice men.

SETTLEMENT ON PROPERTIES ACQUIRED BY THE BOard Under THE LAND SETTLEMENT (SCOTLAND) ACTS, 1919 (PART I.) AND 1921.

During the past year the Board acquired the following properties :

Woodside of Culloden (Inverness). This farm of 203 acres is situated 4 miles east of the town of Inverness, and was purchased by the Board at Whitsunday 1926. The Board gave the selected applicants partial occupation at Whitsunday of the 6 new holdings and 2 enlargements formed on the farm. Formal entry under landholder's tenure was given them at Martinmas.

Kinbeachie (Ross).-The Board purchased this property at public roup in February 1926, and possession was secured at Whitsunday. The farm lies in the parish of Resolis (Black Isle) and extends to 516 acres, of which 342 are arable. Six new holders were settled at Martinmas 1926, and two other applicants will be given entry during 1927.

Tomich (part of) and Broomhill (Ross and Cromarty).-These farms are situated in the parishes of Rosskeen and Kilmuir Easter, close to the town of Invergordon. By agreement with the proprietor, the Board purchased an area of 217 acres, mainly arable, at Martinmas 1926. The area purchased is suitable for the formation of 6 new holdings, but, as it was not found possible to give entry to the applicants at Martinmas 1926, the Board are managing the farm until Whitsunday 1927. From that term the holders will be given partial occupation until Martinmas 1927 when they will be settled on landholder's tenure.

Cairnorchies (Aberdeen).—This farm is in the parish of Old Deer, and is about two miles distant from Mintlaw Station. It was purchased by the Board, acting in co-operation with the Forestry Commission, at Martinmas 1926. The farm is 378 acres in extent, and is almost entirely surrounded by plantation land acquired by the Forestry Commission. It is proposed to form 9 new holdings at Martinmas 1927, three of a small type suitable for pig and poultry rearing and the others suitable for mixed arable and stock farming.

Particulars of all properties acquired by the Board, whether by purchase, feu, or lease, are given in Appendix No. 3. Apart from estates taken over from the Congested Districts Board, the Board at the close of the year were in possession of 64 separate properties, extending in all to 315,372 acres. Of this total, areas amounting to 246,496 acres have been subdivided for the benefit of applicants for small holdings and enlargements;

crofting subjects and miscellaneous areas of woodlands, etc., not suitable for subdivision comprise 66,163 acres; areas extending to 1335 acres are in the Board's hands pending allocation to applicants; and the balance of 1378 acres is in the occupation of tenants holding under lease.

During the year the Board continued the development of land settlement schemes on properties in their hands, and they constituted in this manner 86 new holdings and 22 enlargements of existing holdings. The chief settlements were effected on the following estates :-Kinlochlaich (Argyll), 9 new holdings and 7 enlargements; Hillhead (Inverness), 7 new holdings; Woodside of Culloden (Inverness), 6 new holdings and 2 enlargements; South Craig (Ayr), 20 new holdings; Little Clinterty (Aberdeen), 6 new holdings; Kinbeachie (Ross), 6 new holdings; Westafirth (Shetland), 3 new holdings and 12 enlargements; and Ness-side (Inverness), 8 new holdings.

Up to the close of the year, 1377 new holdings and 351 enlargements of existing holdings had been formed on properties in the ownership of the Board.

Reference was made in the Board's last Report to the proposed sale of the estate of Eriboll, Sutherland. It may be useful in this Report to recapitulate the circumstances that led to the disposal of the property. The estate was purchased by the Board as at Martinmas 1919, for the purpose of meeting two classes of demand for land settlement, (1) for the enlargement of existing holdings in the adjoining township of Laid, one of the poorest in Sutherland, and (2) from applicants, particularly ex-service men, in the county for new holdings.

At Whitsunday 1921, the Board took over the farm from the outgoing tenant and prepared schemes with a view to the settlement of holders at Whitsunday 1922. The enlargement scheme for Laid crofters was carried out at that term, when 5550 acres were made available for them. The second scheme provided for the settlement of 16 holders on the remainder of the farm. The holdings were advertised as to let and available for ex-service applicants, and were brought to the notice of applicants on the Board's list, but it was clear from meetings and correspondence with them that they could not see their way to take the holdings owing to the fact that a total cash payment of £5,875 (representing 25 per cent. of the value of the sheep stock) or £367 per holder was required from them at entry. The Board were accordingly obliged to continue the management of the farm. At a later date 15 holdings similar to those contemplated under the previous scheme were advertised to let at Whitsunday 1923. The Board at this time proposed to reduce the stock in order to lessen the obligations on the holders, but the same difficulty with regard to the initial cash payment towards the value of the sheep stock prevented applicants from coming forward although the total initial cash payment was now only £4,316, or £287. 15s. Od. per holder. The Board carried on the management of the farm from Whitsunday 1923 while various proposals for disposing of the farm were under

consideration. In the first place the Board approached the Forestry Commission to ascertain whether that Department could utilise the southern hirsel of the farm for a scheme of afforestation, but the Commission reported that the ground was unsuitable for their purposes. Two alternative schemes were then prepared-one for the settlement of 17 Sutherland applicants, not necessarily ex-service, and the other for the formation of 39 fishermen's holdings for applicants who, it was suggested, might migrate from Lewis. On examination of these proposals the Board were doubtful whether the results of either would justify the incurring of the estimated cost of carrying it into effect. The whole position was therefore laid before the Secretary of State, and on his instructions the sanction of H.M. Treasury was sought to the sale of the property.

With the consent of the Treasury the estate was advertised for sale by public roup at an upset price of £12,000, entry to be given at Whitsunday 1926, and the sheep stock and others to be taken over at valuation. There were no bidders at the auction. The estate was re-exposed for sale at a reduced upset price of £11,000, but again no offers were forthcoming. With minor changes in the articles of sale rendered necessary by the advanced date, a third exposure at an upset price of £10,000 was made early in June, but no bids were received. Following the failure of this third attempt to dispose of the property, an offer to purchase the farm as at Martinmas 1926 for the sum of £10,000 was received, the offer being subject to certain specific conditions with regard to the transfer of the sheep stock and others at that term. After consideration of these conditions the offer was accepted by the Board, acting on the instructions of the Secretary of State, and the estate accordingly changed hands at that term.

SETTLEMENTS UNDER THE SMALL LANDHOLDERS (SCOTLAND) ACTS, 1886-1919.

Statistics regarding the settlements carried out by the Board under the provisions of the Small Landholders (Scotland) Acts, 1886-1919, will be found in Appendix No. 2. It will be seen that up to the close of the year entry had been given to 2830 applicants.

During the past year 62 new holdings and 25 enlargements were constituted under these Acts on estates in private ownership. Among the settlements effected were the following:

Rodel (Harris).-By arrangement with the occupying owner of this farm an area of about 2000 acres was subdivided into 20 new holdings, and the selected applicants were given entry as at Martinmas 1926. Twelve of the holdings vary in extent from 2 to 8 acres of enclosed land, and the remainder from 13 to 40 acres, and there is a general common pasture of about 1800 acres. Kyles (Harris).-Unusual difficulties stood in the way of the subdivision of this farm, but arrangements were ultimately made

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