en.Wedoany.com Reported - The U.S. Department of Agriculture (USDA) announced up to $9 million in funding to help California clingstone peach growers clear orchards that lost processing channels due to the bankruptcy of Del Monte Foods and the closure of its Modesto cannery.
The funding will support the removal of up to 420,000 clingstone peach trees, approximately 3,000 acres, before the 2026 harvest season. USDA analysis shows that reducing peach production by 50,000 tons could save growers an estimated $30 million in projected losses. The California Canning Peach Association and the California Farm Bureau welcomed the program, stating it will assist growers whose contracts became void after Del Monte filed for bankruptcy last year.
"We are grateful for the support of our elected officials in securing this funding," said Shannon Douglass, President of the California Farm Bureau, in a statement. "After a devastating period, this provides a ray of hope, ensuring California farmers can transition to new crops and remain on their land." Rich Hudgins, CEO of the California Canning Peach Association, said the funding arrives in time to help growers before harvest decisions are made. "We appreciate the swift action taken to protect peach growers, the peach industry, their families, and rural communities," Hudgins said.
The crisis stems from the California clingstone peach industry losing a major processor. Del Monte's Modesto plant had processed tens of thousands of tons of fruit from the Central Valley and Sacramento Valley. The bankruptcy voided 20-year contracts worth over $550 million, leaving approximately 74,000 tons of clingstone peaches unsold last year. Pacific Coast Producers is now the sole canner, offering 24,000 tons in one-year contracts, with roughly 50,000 tons still without a buyer.
The funding was secured with support from California congressional members including Senator Adam Schiff, Representatives Mike Thompson, and David Valadao. Thompson stated the funding targets Yuba County, Sutter County, and surrounding areas, where multi-generational farms are coping with the sudden loss of processing capacity.
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