California peach growers are facing significant challenges after the bankruptcy of Del Monte Foods, which has led to the removal of approximately 420,000 clingstone peach trees.
The U.S. Department of Agriculture (USDA) has approved up to $9 million in federal relief funding to assist farmers in removing about 3,000 acres of peach orchards before the 2026 harvest season. This decision follows the closure of Del Monte’s processing facilities in Modesto and Hughson, leaving farmers without a major buyer for their fruit.
The collapse of the partnership with Del Monte has left Central California growers in crisis, as many had long-standing agreements with the company to supply peaches for canning. The sudden closure of Del Monte’s canneries has resulted in an estimated $550 million revenue loss for growers. According to a statement from Senator Adam Schiff, the USDA funding will help farmers transition to different crops and manage their losses.
The Modesto facility, which processed about 30% to 35% of California’s cling peaches, was a critical hub for Central Valley farmers. Without comparable processing capacity available, growers are left with unsellable fruit. Representative Mike Thompson emphasized the impact on family farms, stating, “When a processing facility closes and 55,000 acres of fruit suddenly have nowhere to go, that’s not something a family farm can just absorb.”
The USDA-backed tree removal program aims to mitigate economic harm and allow farmers to replant with alternative crops like pistachios or walnuts. However, these investments take time to yield returns. The bipartisan effort to secure aid involved nearly 40 members of Congress, including Representative David Valadao and Senator Alex Padilla.
Despite the challenges, Del Monte Foods plans to continue operations during the Chapter 11 process, aiming to restructure its business and pursue a sale of its assets. The removal of peach trees highlights the financial strain on California’s canned fruit industry but is not expected to immediately impact the availability of canned peach products in stores.
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