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USDA OKs Payments to Pull 420,000 Peach Trees After Del Monte Cannery Closures

The aid seeks to keep family farms afloat by cutting costs on fruit that has nowhere to go.

Overview

  • The USDA will provide up to $9 million to pay growers to remove about 3,000 acres of clingstone peach trees before harvest.
  • Lawmakers said the plan would take roughly 50,000 tons out of production and help avoid about $30 million in losses.
  • Del Monte closed its Modesto and Hughson canneries in April after a Chapter 11 filing last year, which left growers without processing options.
  • Pacific Coast Producers bought Del Monte’s canned fruit business but only contracted about 24,000 tons, leaving a large share without a buyer.
  • Growers report steep financial strain from canceled long-term contracts, with earlier estimates pointing to about $550 million in lost revenue.