Land values of Bay of Plenty kiwifruit orchards are returning to pre-Psa-V levels with some properties gaining higher selling prices than when the disease was first detected in November 2010.

Successful grafting from the Gold 16A variety – susceptible to the vine-killing disease – to the new G3 variety, coupled with renewed confidence in Hayward Green's tolerance to Psa are seeing growers invest in new orchards, according to an industry representative.

Real Estate Institute of NZ figures released this week show the region's rural land values jumping nearly three-fold during the last three years – and rural sales doubling in this year's first quarter compared to the same period in 2013.

The Bay of Plenty also enjoyed the largest jump in farm and orchard sales during three months to April 30 this year – with 25 extra sales.

Of the 50 farms sold, 30 were horticultural properties, nine were dairy, eight were grazing, with two from finishing farms and one from forestry.

The Bay's median selling price per hectare for horticulture has gone from $108,570 in April 2012 to $190,081 during last month – a 75 per cent increase.

The region's median selling price per hectare for dairy also jumped 75 per cent between April 2012 and last month.

The median selling price for all Bay farms increased by 180 per cent – from $34,203 in April 2012 to $95,852 to during last month.

REINZ rural spokesman Brian Peacocke says demand for BOP's kiwifruit orchards is bouncing back thanks to different varieties' abilities to cope with Psa-V.

'I think, as I understand it, an awareness of varieties that are currently able to cope with Psa. And so, with management that can help handle that disease of the plant, they seem to be able to farm or operate with that, given the conditions that are there.”

Brian says good quality green orchards are selling for about $300,000 on a per canopy hectare basis 'with one recorded a little bit ahead of that”.

'Green had been in around $280,000-$320,000 [pre-Psa] but it had dropped right back to $170,000-$190,000 per canopy hectare in the last couple of years.

'So it's been quite a climb to come back to where it is now, but we're talking those prices as being quite selective – they are not across the board.”

Brian says the resurgence of interest in green variety orchards is thought to be due to its ability to handle Psa 'and I think one of the new gold varieties, G3, has an improved ability to cope with it from what previous varieties have been able to”.

'From what I understand with what gold is available, and there is not much of, indications are it could be getting back to $400,000 per canopy ha.

'The level [for gold] pre-Psa was $50,000-$500,000 canopy/ha.”

Brian says demand is particularly increasing in the Te Puke area.

'But they're [the buyers] mostly focussed on quality orchards in good locations.”

New Zealand Kiwifruit Growers Inc president Neil Trebilco says the increased demand is a result of growers waiting see what happens since G3 has been grafted to replace gold 16A, which was very susceptible to Psa.

'The industry has been holding its breath to see if the G3 is going to work, because G3 has been a whole new category for the industry and for sales around the world.”

'So we needed a viable PVR [Plant Variety Right] in the face of Psa. Growers saw last spring as key to that – if G3 was going to survive after spring, we knew very quickly it [the industry] would go back to a growth phase.”

Neil says while growers initially feared Hayward Green would succumb to Psa, like it has in Italy, the industry has found by removing 16A 'which was a type of breeding ground for bacteria” has seen it flourish.

'Many Hayward orchards have had Psa, but we've seen those very same orchards bounce back, with quite a few growers in Te Puke getting better Hayward production than ever – even prior to Psa.”

REINZ data shows 498 farm sales happened nationwide in three months to April 30 this year, compared to 472 during the same period in 2013.

Brian says sales volumes for the period are continuing on an upward trend.

'What we're saying is the market is in a very, good healthy state. There is good enquiry across the board for rural properties and good lifestyle properties – in the BOP - for good kiwifruit orchards.”