Del Monte bankruptcy prompts massive peach tree removal in California

California peach growers will destroy an estimated 420,000 rock-solid peach trees after a decades-long partnership with Del Monte Foods collapsed, leaving farmers without buyers for tens of thousands of tons of fruit.

The U.S. Department of Agriculture previously approved up to $9 million in federal relief funds to help California farmers cut down about 3,000 acres of peach orchards ahead of the 2026 harvest season, according to news released by Adam Schiff and California lawmakers.

The emergency aid comes after Del Monte closed processing plants in the California towns of Modesto and Hughson, the aftermath of the food giant’s Chapter 11 bankruptcy filing last year.

Here’s what you need to know about removing stone clinging peach trees.

Why California peach farmers are cutting down trees

Growers in Central California were plunged into crisis earlier this year when Del Monte permanently closed its cannery, canceling many long-term grower contracts and leaving farmers without a major processing outlet for their sticky walnuts.

According to MSN and the Sacramento Bee, many farmers have signed 20-year agreements with Del Monte to grow peaches exclusively for canning. According to reports, the sudden closure will cost growers approximately $550 million in lost revenue.

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Lawmakers said USDA funding will allow growers to remove trees that no longer have a viable market while helping them transition to different crops.

“As requested by lawmakers, USDA assistance to farmers will include up to $9 million to clear up to 420,000 rock peach trees,” the office of Sen. Adam Schiff, D-Calif., said in a statement.

A USDA analysis found that reducing peach production by about 50,000 tons could help growers avoid an estimated $30 million in losses.

Iconic brand Del Monte has filed for bankruptcy.
Iconic brand Del Monte has filed for bankruptcy.

what are legislators saying

“I am pleased that USDA has released this federal funding after we urged the Trump Administration to provide relief to peach farmers,” Schiff said in a statement.

Rep. Mike Thompson, D-Calif., said the scale of the damage has created a crisis that many family farms cannot handle on their own.

“When a processing facility closes and 55,000 acres of fruit suddenly has nowhere to go, that’s not something a family farm can absorb,” Thompson said.

Rep. David Valadao, D-Calif., said the Modesto plant has been an important processing center for generations of Central Valley farmers.

“For generations, Central Valley family farms have relied on Del Monte’s Modesto plant to process peaches, and the sudden closure of that plant leaves growers with thousands of pounds of fruit and no clear path forward,” Valadao said.

The bipartisan push for aid includes nearly 40 members of Congress, including Democrats Alex Padilla, D-Calif., and Nancy Pelosi, D-Calif.

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What happened to Del Monte Foods?

Del Monte Foods filed for Chapter 11 bankruptcy protection in July as the 138-year-old canned food company seeks to restructure debt and sell assets.

The company, known for its iconic green labels on canned fruits and vegetables, described the bankruptcy filing as a “strategic move” to stabilize operations while continuing to serve customers.

President and CEO Greg Longstreet said in a company statement that the purpose of the bankruptcy proceedings is to “accelerate our turnaround and build a stronger, more durable Del Monte Foods.”

Can shoppers notice the impact?

The removal of 420,000 clingstone peach trees is not expected to result in the immediate disappearance of canned peaches from grocery store shelves; however, it highlights the financial pressures facing California’s canned fruit industry in the wake of Del Monte’s bankruptcy and cannery closures.

California-grown peaches are commonly used in canned fruit products, including those previously processed through the Del Monte Modesto plant. Lawmakers said the USDA-backed tree removal program was designed to help farmers cope with losses from the many contracts lost to Del Monte processing operations.

Delmonte said the company plans to continue operating through the Chapter 11 process, working to restructure the business and sell remaining assets.

Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com or on Twitter @athompsonABJ

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This article originally appeared in USA TODAY: Del Monte bankruptcy sparks widespread peach tree clearing in California

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