California peach growers get federal aid to pull trees. Here’s what to know
California peach growers left stranded by Del Monte Foods’ bankruptcy and the closure of its Modesto cannery are getting federal help to pull thousands of acres of unwanted trees. The U.S. Department of Agriculture approved up to $9 million to subsidize tree removal after no buyer emerged for the cannery, shrinking the industry’s capacity to can peaches.
We reported that most recent development, the aid from the federal government, last week: “California peach growers secure federal funds to pull trees after Del Monte bankruptcy”
Here are key takeaways:
• Del Monte’s bankruptcy canceled 20-year grower contracts valued at more than $550 million. Last year, the Modesto cannery processed about 74,000 tons of cling peaches from Central Valley growers.
• Pacific Coast Producers, the last remaining large-scale processor, offered one-year contracts for about 24,000 tons — leaving roughly 50,000 tons of peaches, or about 3,000 acres, without a buyer.
• The California Canning Peach Association pitched a $12 million tree-pull program, with $9 million in federal funds and a $3 million match from the association and industry. The USDA approved the request in late April.
• The program will fund removal of up to 420,000 clingstone peach trees before summer harvest and help cover costs of transitioning land to new crops. A USDA analysis found removal could protect farmers from about $30 million in potential losses.
• Sutter County has the largest concentration of affected growers, with an estimated 2,000 acres unaccounted for — about half of the affected acreage statewide.
• Rep. Mike Thompson, D-St. Helena, said lawmakers want farmers who already pulled trees to remain eligible for assistance: “I want to make sure that farmers who pull their trees irrespective of when, if it was last week or next week, that they’re in the queue and eligible for this assistance.”
• California had 11 peach processors in 1980. Only Pacific Coast Producers remains.
This story was originally published May 4, 2026 at 5:00 AM with the headline "California peach growers get federal aid to pull trees. Here’s what to know."