USDA approved up to $9 million in relief to help California growers remove about 420,000 clingstone peach trees after Del Monte shutdowns.
California’s peach industry is preparing for a dramatic shift after the fallout from Del Monte Foods’ bankruptcy set off a supply-and-demand crisis for growers who say they suddenly lost a major buyer for their fruit.
Roughly 420. 000 clingstone peach trees are expected to be destroyed across Central California. a response tied to delayed or vanished processing contracts that left many farmers with nowhere to send tens of thousands of tons of peaches.. The effort is being supported by federal relief approved by the U.S.. Department of Agriculture, according to a release from Sen.. Adam Schiff and California lawmakers.
The USDA approval includes up to $9 million to help remove about 3,000 acres of peach orchards ahead of the 2026 harvest season.. Schiff’s office said the assistance is specifically intended to let growers pull trees that no longer have a viable market while also supporting transitions to other crops.
The urgency behind the removals traces back to Del Monte’s decision to permanently shutter processing facilities in two Central Valley towns. Modesto and Hughson.. Lawmakers described the closures as a turning point that left producers without the canning outlet they had relied on for years. particularly for clingstone peaches used in canned products.
Why the tree removals are happening
Del Monte’s actions brought Central California growers into what lawmakers characterized as an emergency. The chain began when the company shuttered its canneries in April, cancelling many grower contracts and eliminating a longtime processing channel for clingstone peaches.
According to reporting previously cited by lawmakers. many growers had built their operations around about 20-year agreements tied to Del Monte’s canning needs.. When those longstanding contracts were abruptly disrupted. farmers faced large-scale uncertainty about where to sell their crops and whether the harvest season would bring any meaningful return.
Loss estimates cited in the coverage underscore how serious the disruption is expected to be for the region.. Lawmakers said the fallout could translate into major revenue impacts for growers. reflecting both the sudden nature of the contract changes and the difficulty of finding replacement buyers for a crop tied to specific processing requirements.
USDA’s role in the federal response
Schiff’s office said the USDA funding is designed to cover up to $9 million in orchard removal costs. supporting the removal of up to 420. 000 clingstone peach trees.. The program is intended to prevent additional losses by reducing production of fruit that cannot be processed or marketed through the channels farmers previously depended on.
The relief package also reflects analysis indicating that adjusting production levels could help reduce projected financial strain. Lawmakers said USDA analysis found that removing 50,000 tons of peaches from production could help growers avoid roughly $30 million in projected losses.
What lawmakers say about the disruption
Sen. Adam Schiff framed the federal action as the result of pressure on the Trump administration to deliver relief to peach farmers. His office said he was pleased USDA was unlocking federal funding after what it characterized as urging.
Rep.. Mike Thompson. a Democrat from California. pointed to the scale of the sudden disruption and argued it created a burden that many family farms could not absorb on their own.. His comments focused on the practical reality that when a processing facility closes and a large acreage of fruit has “nowhere to go. ” the consequences fall quickly on producers.
Rep. David Valadao, a Republican from California, emphasized the role of the Modesto facility as a long-standing processing hub for Central Valley farms. He said its closure left growers with large volumes of fruit but no clear path forward, intensifying pressure on the regional farming economy.
Lawmakers also described the response as bipartisan. The push for aid included nearly 40 members of Congress, among them California Reps. Alex Padilla and Nancy Pelosi, reflecting how broadly lawmakers viewed the issue as a threat to local agricultural stability.
What happened to Del Monte Foods
Del Monte Foods filed for Chapter 11 bankruptcy protection in July, setting in motion a restructuring effort aimed at managing debt and pursuing a sale of remaining assets. The company described the move as a strategic step to stabilize operations while continuing to serve customers.
Del Monte is known for its canned fruit and vegetable products under its signature green label. During the Chapter 11 process, President and CEO Greg Longstreet said the bankruptcy proceedings were meant to “accelerate” a turnaround and build a stronger, longer-lasting company.
Even as the federal relief moves forward for growers, Del Monte said it plans to continue operating during the Chapter 11 process while restructuring and pursuing a sale of its remaining assets.
Could shoppers see changes in grocery stores?
Lawmakers and others involved in the response said the removal of roughly 420. 000 clingstone peach trees is not expected to cause an immediate disappearance of canned peach products from store shelves.. The program is instead aimed at helping growers manage losses in the wake of lost contracts tied to Del Monte’s processing operations.
Clingstone peaches are widely used in canned fruit products, including those processed through Del Monte’s Modesto facility.. With the orchard removal plan focused on the period leading up to the 2026 harvest season. the near-term impact on supermarket offerings is expected to be limited. even as the financial consequences for farmers remain significant.
For growers. the federal program represents an attempt to blunt the shock of a market disruption that arrived faster than many family farms could adjust.. As Del Monte continues its bankruptcy process and works toward asset sales. farmers are already being asked to restructure their crop plans and reduce production where buyers may be uncertain.
Misryoum
Del Monte bankruptcy clingstone peach trees USDA federal relief California agriculture Central Valley growers canned peaches