The closure of the Modesto plant, which processed more than 30 percent of California’s canned peaches, disrupted contracts and left many growers without a viable outlet for their fruit. Designed by Magnific

 

SACRAMENTO, CA (MPG) - Federal officials have approved up to $9 million in aid to assist California peach growers following the closure of a major processing facility in Modesto, a move lawmakers say left farmers without a market for their crops.

Rep. Mike Thompson, Sen. Adam Schiff and Rep. David Valadao announced the U.S. Department of Agriculture will fund a clingstone peach tree removal program aimed at helping growers adjust after the Del Monte facility shut down.

The program will support the removal of up to 420,000 trees, about 3,000 acres, ahead of the 2026 harvest season. USDA analysis indicates that reducing production by roughly 50,000 tons could prevent an estimated $30 million in losses for growers.

The closure of the Modesto plant, which processed more than 30 percent of California’s canned peaches, disrupted contracts and left many growers without a viable outlet for their fruit.

“Proud to have helped secure up to $9 million to support peach farmers in Yuba, Sutter and surrounding regions,” Thompson said. “When a processing facility closes and 55,000 acres of fruit suddenly have nowhere to go, that’s not something a family farm can just absorb.”

Schiff said the funding follows a joint request to federal officials to provide relief. “I am pleased that USDA is unlocking this federal funding,” he said. “California is the nation’s largest agriculture state and I’m glad to see support for our producers.”

Valadao said the closure created immediate uncertainty for Central Valley growers. “This investment will give producers the time they need to adjust and plan for the future,” he said.

Assemblyman James Gallagher, who worked with federal lawmakers on the request, said the assistance offers a path forward but does not fully offset losses.

“Our Sacramento Valley peach growers have been left with an impossible choice,” Gallagher said. “While this relief doesn’t make them whole, it gives many growers a chance to rebuild.”

Lawmakers said the funding stems from bipartisan efforts, including a letter signed by 38 members of Congress urging USDA action. The program is intended to help stabilize the market by reducing excess supply while growers transition to other crops.

USDA Secretary Brooke Rollins confirmed the funding in a notice to Congress, stating the department would make up to $9 million available for the tree removal effort.

The assistance targets growers across the Sacramento Valley and surrounding regions affected by the plant closure and the resulting loss of processing capacity.