May 07, 2026

USDA funds $9M orchard removal program amid California peach industry crisis

USDA will provide up to $9M to remove over 400K clingstone peach trees in California, helping growers after Del Monte’s cannery closure.

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The California Canning Peach Association and the California Farm Bureau are applauding USDA’s recent announcement to allocate up to $9 million to fund a clingstone peach tree removal program. The funds are earmarked to provide relief to California growers facing severe economic hardship and uncertainty following the closure of the Del Monte cannery in Modesto.

The funding will support the removal of up to 420,000 clingstone peach trees, which cover about 3,000 acres of production throughout the state. The tree removal program aims to address economic harm facing producers who were saddled with defunct long-term contracts after Del Monte Foods filed for bankruptcy on July 1, 2025.

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“This funding offers a glimmer of hope after a devastating period, ensuring California farmers can transition to new crops and stay on their land”, said Shannon Douglass, president, California Farm Bureau.

“We’re grateful for the swift action taken to protect peach growers, the peach industry, their families and the rural communities that depend on this industry,” added Rich Hudgins, CEO, California Canning Peach Association.

The aid package was made possible via USDA, U.S. Representatives Mike Thompson and David Valadao along with 38 other members of California’s House delegation, U.S. Senator Adam Schiff and California Assembly member James Gallagher.

“This funding gives growers the opportunity to make choices about growing a different commodity,” said Ranjit Davit, a Sutter County peach grower. “Without it, we were looking at abandoned orchards and generational farming operations coming to an end.”