California farmers in the Central Valley are preparing to destroy approximately 420,000 clingstone peach trees following the collapse of Del Monte Foods, which permanently closed its canneries in Modesto and Hughson earlier this year. The closures, triggered by a Chapter 11 bankruptcy filing in July 2025, have left hundreds of workers jobless and devastated growers who lost long-term contracts with the 139-year-old company.
Financial Impact and Federal Response
Farmers face an estimated $550 million in lost revenue, according to the Sacramento Bee. 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 aid to remove up to 420,000 clingstone peach trees before the harvest season, which typically runs from late May through September. The emergency assistance will cover the removal of about 3,000 acres of orchards.
Officials stated that removing approximately 50,000 tons of peaches from production could reduce oversupply and save farmers an estimated $30 million in additional losses. Growers can then pivot to alternative crops.
Statements from Lawmakers
“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 emphasized that many affected farmers are multigenerational family growers who have spent decades building their orchards. They warned that without federal help, 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.
Market Adjustments
After a court allowed Del Monte to sell its assets, Pacific Coast Producers acquired Del Monte's canned fruit business. The company agreed to buy about 24,000 tons of peaches from farmers, but that still leaves approximately 50,000 tons without a buyer, meaning a large portion of the crop will go unused.
