Home / Business and Economy / Del Monte Exit Leaves CA Peach Farmers in Crisis
Del Monte Exit Leaves CA Peach Farmers in Crisis
8 May
Summary
- Del Monte closed canneries, ending long-term contracts.
- Federal aid offered to help farmers remove 3,000 acres.
- Modesto plant processed one-third of California's peaches.
California farmers are grappling with the potential removal of about 3,000 acres of clingstone peach trees due to Del Monte's closure of its canneries. This decision has left growers with orchards that took years to establish without a guaranteed buyer.
The U.S. Department of Agriculture has allocated $9 million in federal aid to support farmers in the tree removal process. This assistance aims to provide a financial bridge for farmers to transition to cultivating different crops and remain on their land.
Del Monte Foods' bankruptcy filing in July 2025 led to the closure of its canneries, including the significant Modesto plant. This facility was responsible for processing between 30% and 35% of California's clingstone peaches. The loss of these operations impacts farmers who had long-term contracts with the company, valued at over $550 million.
Lawmakers have actively sought government assistance for these farmers. The situation presents a difficult choice for growers like Tony and Laura McGrath, who must decide whether to maintain trees with years of productive life or utilize federal aid to switch to other agricultural endeavors.
