California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
For most warm-weather fruit lovers, the prospect of endless ripe, pink peaches turning up is mouth-watering. For Central California farmers, this is more of a waking nightmare.
To make ends meet, these farmers are considering whether to destroy nearly 3,000 acres or nearly 420,000 peach trees following the closure of Del Monte Foods canneries earlier this year. With the closure of the Modesto Del Monte plant, which processes 30% to 35% of the state’s peaches, peach farmers are now faced with a glut of fruit and no one to sell it to. Now farmers have no choice but to uproot these trees and switch to different crops to compensate for their losses.
As a result, the U.S. Department of Agriculture (USDA) has approved $9 million in federal aid to help farmers switch from cutting down trees to more valuable crops, according to a recent announcement. Press release From California Senator Adam Schiff. Funds follow suit from more than 40 California lawmakers wrote To Minister of Agriculture Brooke rollins In March, he called for financial relief for farmers, arguing that USDA intervention was needed to stabilize the prosperity of multi-generational food growers in the region.
Removing 50,000 tons of peaches from production could save farmers about $30 million in estimated losses that would otherwise be wasted by the closure of farmers’ largest buyer, Schiff said, citing a USDA analysis.
California Farm Bureau President Shannon Douglass said in a statement that this funding “offers a ray of hope after a devastating time, ensuring California farmers can transition to new crops and stay on their land.” expression.
A fallen food production giant
Del Monte, a nearly 140-year-old food manufacturer and distributor based in California, filed for bankruptcy It closed canneries in Modesto and Hughson in July 2025 last month. The company had struggled to adapt to changing customer preferences away from canned fruits and vegetables and toward fresh produce. The company’s problems intensified as operational costs rose, partly due to tariffs on imported steel used in cans.
According to Del Monte bankruptcy court applicationsPeach farmers in the state had fairly long-term contracts to supply fruit to the company due to the 20-year lifespan of these particular peach trees, which took years to grow. The total value of these lost contracts is more than $550 million.
U.S. farmers are already navigating many challenges. Tariffs has increased input costs and priced some American growers out of global markets. The Iranian war further complicated the situation of farmers due to the closure of the Strait of Hormuz. Cut nearly a third of global fertilizer shipments and rising prices of essential agricultural chemicals have forced some to rethink what crops they grow. Excessive water use and persistent droughtThis situation, exacerbated by climate change, has further reduced crop yields.
