This document discusses the efficiency of nearest neighbour balanced block designs (NNBD) and nearest neighbour balanced incomplete block designs (NNBIBD) for estimating treatment effects in agricultural experiments where observations within blocks are correlated. It is observed that NNBD and NNBIBD have high efficiency compared to regular block designs for estimating direct and neighbour treatment effects, especially when the error follows first-order autocorrelated models like AR(1), MA(1), and ARMA(1,1) with correlations between 0.1-0.4. The performance of these designs is satisfactory under different correlation structures, and they provide greater efficiency gains than regular block designs under MA(1) models.