dailyloe.com – California farmers are confronted with a dire situation as Del Monte Foods has closed its canning facilities. This development has led farmers to consider destroying around 3,000 acres of peach trees. The closure of the Modesto Del Monte plant, responsible for processing 30% to 35% of the state’s cling peaches, has created a surplus of fruit without buyers.
With limited options, farmers are planning to uproot these trees and transition to other crops to mitigate financial losses. In response, the U.S. Department of Agriculture (USDA) has approved $9 million in federal aid to assist farmers in removing the trees. This support aims to help them pivot to more profitable crops.
California Senator Adam Schiff announced the funding, which follows appeals from over 40 California lawmakers to Agriculture Secretary Brooke Rollins in March. They argued that USDA aid was essential for the stability of multi-generational food growers in the region.
Schiff referenced a USDA analysis indicating that eliminating 50,000 tons of peaches from production could save farmers roughly $30 million in potential losses. This funding represents a “glimmer of hope,” according to California Farm Bureau President Shannon Douglass, ensuring farmers can transition to new crops and maintain their land.
Del Monte, a food production company with nearly 140 years of history, filed for bankruptcy in July 2025. The company’s financial struggles have led to the closure of its canneries in Modesto and Hughson. The shift in consumer preferences towards fresh produce over canned goods contributed to these challenges, compounded by rising operational costs.
Del Monte’s bankruptcy court filings revealed that the state’s peach farmers had long-term contracts with the company. These contracts, linked to the 20-year lifespan of specific peach trees, are now lost, collectively valued at over $550 million. Farmers are already facing various difficulties, and the loss of such a significant buyer exacerbates their situation.
