GOULBURN Valley fruit growers have an industry exit route after the State Government pledged $16 million to property sales in the region.
Concessional loans of up to $650,000 will be available for other farm businesses looking to expand and acquire the distressed properties from July 1.
SPC Ardmona's decision to reduce its fruit intake for canned produce by 50 per cent last year has left some growers "preferring to sell", according to real estate agent Matthew Giffin.
"The orchard country has come right back," said Mr Giffin, who believes the loans, which have an interest rate of 4.5pc over three years, would attract buyers.
Land with good soil types was expected to receive interest from vegetable growers, he said.
The move by the State Government as part of the Goulburn Valley Fruit Industry Growing Roadmap was met with cautious optimism by Fruit Growers Victoria (FGV) president John Wilson.
"We're reasonably pleased, but there are things in the Roadmap announcement that require further examination," Mr Wilson said.
The recognition given to the magnitude of the fruit growing industry in Australia in the report would also bode well for future investment, he said.
"By and large there's one very important statement that brings horticulture out of the shadows from other commodities, and that is the value of horticulture to Australia is almost equal to the value for dairy."
If completely utilised, the loans could equate to enough capital to buy roughly over 16pc of the 1600-hectares of fruit growing plots in the Goulburn Valley, according to the FGV president.
Chris Howard, a financial councillor at Goulburn Murray Hume Agcare, said several of his clients who were fruit growers in the area had taken a 'wait and see' approach to their future amid SPC Armdona's woes, and may now have a new option to sell up.
"I certainly think this is positive news and anything that gives them options is a good thing," he said.
Although he was yet to speak to his clients about the Napthine Government's offering, he thought expanding orchardists could find the 4.5pc loan rate "very attractive".
"The devil will be in the detail in just how much people can access though."
Rural Finance will administer the loans and operations general manager Peter Nee said growers with orchards planted for canned fruit varieties were finding buy-out demand was limited.
The loans, which will cater for about 25 businesses, could be used by expanding fruit growers or producers looking to restructure the land, he said.
"If you're looking to remove trees it takes time and money," he said.
The Roadmap funding plan would also include money for a Horticulture Centre of Excellence at Tatura, which would expand the existing research facilities already in the town.
Minister for Agriculture Peter Walsh said the centre would house scientific, business and industry development projects.
"The Centre of Excellence will also act as a regional hub for horticulture industry development, and will help improve coordination between growers and governments as we tackle issues such as expanding market access," he said.