USDA Launches $9 Million Program to Support Cling Peach Growers After Del Monte Plant Shutdown
The U.S. Department of Agriculture (USDA) has announced a $9 million initiative to help California cling peach growers transition after the closure of Del Monte Fresh Produce’s processing facility in Modesto. The program, administered through the USDA Farm Service Agency (FSA), aims to fund the removal of cling peach orchards and support affected farmers in adapting to market changes. With applications now open, eligible growers can access financial assistance to mitigate economic losses tied to the facility’s shutdown.
Why This Matters: The Impact of Del Monte’s Closure
Del Monte’s Modesto plant, a key processor for California’s cling peach industry, announced its closure in late 2025, leaving hundreds of growers without a primary buyer for their harvest. The facility, which processed millions of pounds of peaches annually, was a critical hub for the state’s $7.3 billion peach industry, which employs thousands of farmworkers and supports rural economies across the Central Valley.
The USDA’s intervention comes as part of broader efforts to stabilize agricultural communities facing disruptions due to shifts in processing capacity, climate variability, or market demand. Similar programs have been deployed in recent years to assist farmers affected by natural disasters or changes in supply chains.
Key Details of the USDA Assistance Program
Funding Allocation
- $9 million total available for orchard removal and related costs.
- Funds will be distributed on a cost-share basis, with the USDA covering up to 75% of eligible expenses.
- Priority will be given to growers who can demonstrate financial hardship directly tied to the Del Monte closure.
Eligible Expenses
The program covers costs associated with:
- Orchard removal (including equipment, labor, and disposal).
- Site restoration to prepare for alternative land uses (e.g., cover crops, rotational grazing, or new plantings).
- Technical assistance for transitioning to new markets or crops.
Application Process
Growers must apply through their local USDA Service Center. Key steps include:
- Contact your county FSA office to verify eligibility.
- Submit a detailed plan outlining orchard removal and site restoration.
- Provide documentation of financial impact (e.g., contracts with Del Monte, harvest reports).
- Undergo an FSA review to determine cost-share eligibility.
Deadline: Applications will be accepted on a rolling basis, with funds disbursed until the $9 million allocation is exhausted. Early applicants are encouraged to act promptly.
Who Qualifies for Assistance?
Eligibility is limited to:
- California-based cling peach growers who lost a primary processing contract due to the Del Monte Modesto closure.
- Producers who can demonstrate financial hardship as a result of the shutdown (e.g., unsold inventory, reduced revenue).
- Farmers committed to orchard removal and site restoration within 12–18 months of receiving funds.
Note: The program does not cover general farming operations or expenses unrelated to the Del Monte closure. Growers should consult their local FSA office for specific guidance.
Additional USDA Resources for Farmers
Beyond the Del Monte-specific program, the USDA offers multiple avenues of support for agricultural producers facing challenges:
Disaster Assistance
For growers affected by natural disasters (e.g., drought, wildfires), the USDA’s Supplemental Disaster Relief Program (SDRP) provides low-interest loans and grants.
Conservation Programs
Programs like the Conservation Reserve Program (CRP) offer financial incentives for land retirement or sustainable land management.
Market Transition Assistance
The FSA’s Farm Loan Programs provide financing for farmers exploring new crops or markets.
Frequently Asked Questions
Q: How do I prove my financial hardship?
A: Submit records such as canceled contracts with Del Monte, bank statements showing reduced revenue, or harvest reports indicating unsold peaches. Your local FSA office can provide a full list of required documentation.
Q: Can I use these funds for anything other than orchard removal?
A: No. Funds are specifically allocated for orchard removal, site restoration, and transition planning. General farming expenses are not covered.
Q: What if I don’t remove my orchard?
A: The program requires orchard removal as a condition for funding. Failure to comply may result in repayment of funds.
Q: Are there similar programs for other crops or regions?
A: While this program is tailored to California cling peach growers affected by Del Monte’s closure, the USDA offers disaster and transition assistance for other agricultural sectors and regions. Contact your local FSA office to explore options.
Key Takeaways
- The USDA’s $9 million program is a targeted response to the Del Monte Modesto closure, offering cost-share funding for orchard removal.
- Eligibility is limited to California cling peach growers with proven financial losses tied to the shutdown.
- Applications are processed through local USDA Service Centers on a rolling basis.
- Growers must commit to orchard removal and site restoration within 12–18 months.
- Additional USDA programs (e.g., disaster relief, conservation grants) may provide further support.
Looking Ahead: Adapting to Industry Shifts
The closure of Del Monte’s Modesto facility underscores broader challenges facing California’s agricultural sector, including climate-related disruptions and shifts in processing capacity. While the USDA’s program provides immediate relief, long-term resilience will require:
- Investment in diversified processing infrastructure to reduce dependency on single buyers.
- Exploration of new markets for peaches (e.g., fresh sales, value-added products).
- Adoption of sustainable farming practices to mitigate climate risks.
For growers navigating this transition, the USDA’s local offices remain a critical resource for guidance, funding, and technical assistance.