43 3. The present objective is the ploughing up of at least 1,500,000 acres of grassland for cropping in 1940. When this objective was decided upon in 1937 it was believed to be within the physical capacity of the industry on certain assumptions, including normal weather conditions, an adequate supply of labour, and the creation by the Government of conditions which would ensure an energetic response from farmers. In fact, the labour situation has been about what was anticipated: weather, however, has been most unfavourable and the policy of keeping prices more or less at pre-war levels has had a depressing effect on farmers' enterprise.