California farmers are preparing to destroy approximately 420,000 clingstone peach trees following the collapse of Del Monte Foods, which permanently closed its canneries earlier this year. The closures have left growers with few options for their crops, prompting federal intervention to mitigate financial losses.
Del Monte's Bankruptcy and Cannery Closures
Del Monte Foods, a 139-year-old company specializing in canned fruits and vegetables, shut down its canneries in Modesto and Hughson in April after filing for Chapter 11 bankruptcy protection in July 2025. The closures resulted in hundreds of job losses and devastated local farmers, many of whom had long-term contracts with Del Monte that were abruptly terminated. With few alternative buyers, growers now face an estimated $550 million in lost revenue, according to the Sacramento Bee.
Federal Aid Package
In response, Senator Adam Schiff and Representatives Mike Thompson and David Valadao announced last week that affected growers can receive up to $9 million in federal assistance. This funding will support the removal of up to 420,000 clingstone peach trees before the upcoming harvest season, which typically runs from late May through September. The approved emergency aid will help clear approximately 3,000 acres of orchards, reducing the supply of peaches by about 50,000 tons. Officials estimate this measure could prevent an additional $30 million in losses for farmers, allowing them to transition their land to other crops.
"For generations, Central Valley family farms have relied on Del Monte's Modesto facility to process their peaches," Valadao said in a statement. In a March letter to Agriculture Secretary Brooke Rollins, Schiff, Thompson, Valadao, and 39 other members of Congress highlighted that many impacted farmers are multigenerational family growers who have spent decades building their orchards. Without federal help, they warned, the situation could cause lasting harm to the nation's agricultural system.
"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. This funding is a critical step in ensuring these important multi-generational businesses can stay afloat," Thompson added in his own statement announcing the aid package last week.
Market Impact and Future Plans
After a court allowed Del Monte to sell its assets, Pacific Coast Producers acquired the company's canned fruit business. The firm agreed to purchase about 24,000 tons of peaches from farmers, but approximately 50,000 tons remain without a buyer, meaning a significant portion of the crop will go unused, according to the Sacramento Bee. The removal of trees is intended to balance supply and demand, helping stabilize the market for remaining growers.
