California peach farmers are grappling with the fallout after Del Monte Foods closed its Modesto and Hughson canneries earlier this year, leaving growers with no market for their clingstone peaches. The shutdown has forced farmers to consider destroying approximately 3,000 acres—equivalent to 420,000 peach trees—and pivot to alternative crops to mitigate losses.
Federal Aid to Assist Transition
The U.S. Department of Agriculture (USDA) has approved $9 million in federal aid to help farmers remove the peach trees and transition to more profitable crops. This funding follows a March request from more than 40 California lawmakers urging USDA intervention to stabilize the region’s agricultural economy. According to Sen. Adam Schiff, removing 50,000 tons of peaches from production could save farmers $30 million in projected losses.
"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 California Farm Bureau President Shannon Douglass.
Del Monte’s Downfall
Del Monte, a nearly 140-year-old food producer, filed for bankruptcy in July 2025 after struggling to adapt to shifting consumer preferences away from canned fruits and vegetables. Rising operational costs, exacerbated by tariffs on imported steel used in cans, further strained the company’s finances. The closure of its canneries left farmers with over $550 million in canceled long-term contracts, many of which were tied to peach trees with 20-year lifespans.
Broader Challenges for Farmers
U.S. farmers are already contending with increased input costs due to tariffs, disruptions in global fertilizer supplies from geopolitical tensions, and persistent drought worsened by climate change. For peach growers, transitioning to crops like almonds or prunes presents its own challenges, requiring significant time and financial investment with no guaranteed returns.
Tony McGrath, a Yuba County farmer, highlighted the difficulties: "There’s really nothing that you can move into. Walnut prices aren’t that great. Prunes take seven to eight years to develop, and almonds require a hefty upfront investment."
The situation underscores the broader vulnerabilities of American agriculture to corporate decisions and global market shifts, leaving farmers to navigate an increasingly precarious landscape.