SACRAMENTO – Today, Assemblyman James Gallagher (R-East Nicolaus) announced that the U.S. Department of Agriculture has approved $9,000,000 in funding to assist local peach farmers impacted by the closure of the Del Monte processing facility in Modesto. The funding was approved by President Trump’s administration following ongoing efforts by Assemblyman Gallagher, Congressman Mike Thompson (CA-04), and other policymakers.
“Our Sacramento Valley peach growers have been left with an impossible choice in the wake of the Del Monte bankruptcy: tear out their trees or absorb devastating losses. While this relief doesn’t make them whole, it gives many growers a path forward and a chance to rebuild. I was proud to work with Congressman Thompson and President Trump’s administration to help deliver this support. In divided times, this is the kind of cooperation we need—real leadership that puts people first,” said California State Assemblyman James Gallagher.
Following the closure of the Del Monte processing facility in Modesto, countless peach growers in the region are facing widespread contract cancellations, no market for their crop, and lack a viable path to mitigate their losses. This federal funding will support affected growers in removing approximately 420,000 peach trees and transitioning to new crops.
Gallagher and Thompson noted that today’s announcement was the result of bipartisan legislative collaboration with Republicans and Democrats working together to deliver results for the region.
“Proud to have helped secure up to $9 million to support peach farmers in Yuba, Sutter, and surrounding regions,” said Rep. Mike Thompson. “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. This funding is a critical step in ensuring these important multi-generational businesses can stay afloat. Thank you Senator Schiff and Rep. Valadao, Assemblyman Gallagher, and our local leaders and farmers who helped make this happen.”
The funding will assist with the removal of approximately 420,000 peach trees — approximately 3,000 acres — prior to the 2026 harvest season. Based on USDA’s analysis, removing 50,000 tons of peaches from production could save growers nearly $30 million in projected losses.
A copy of the letter from President Trump’s administration authorizing the funding can be found here.
Background
The Del Monte facility processed a substantial share of the state’s canned fruit production, including more than 30 percent of California peaches. With no comparable alternative processing capacity available, producers are facing severe uncertainty and financial hardship.
“Our Sacramento Valley peach growers have been left with an impossible choice in the wake of the Del Monte bankruptcy: tear out their trees or absorb devastating losses. While this relief doesn’t make them whole, it gives many growers a path forward and a chance to rebuild. I was proud to work with Congressman Thompson and President Trump’s administration to help deliver this support. In divided times, this is the kind of cooperation we need—real leadership that puts people first,” said California State Assemblyman James Gallagher.
Following the closure of the Del Monte processing facility in Modesto, countless peach growers in the region are facing widespread contract cancellations, no market for their crop, and lack a viable path to mitigate their losses. This federal funding will support affected growers in removing approximately 420,000 peach trees and transitioning to new crops.
Gallagher and Thompson noted that today’s announcement was the result of bipartisan legislative collaboration with Republicans and Democrats working together to deliver results for the region.
“Proud to have helped secure up to $9 million to support peach farmers in Yuba, Sutter, and surrounding regions,” said Rep. Mike Thompson. “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. This funding is a critical step in ensuring these important multi-generational businesses can stay afloat. Thank you Senator Schiff and Rep. Valadao, Assemblyman Gallagher, and our local leaders and farmers who helped make this happen.”
The funding will assist with the removal of approximately 420,000 peach trees — approximately 3,000 acres — prior to the 2026 harvest season. Based on USDA’s analysis, removing 50,000 tons of peaches from production could save growers nearly $30 million in projected losses.
A copy of the letter from President Trump’s administration authorizing the funding can be found here.
Background
The Del Monte facility processed a substantial share of the state’s canned fruit production, including more than 30 percent of California peaches. With no comparable alternative processing capacity available, producers are facing severe uncertainty and financial hardship.
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Assemblyman James Gallagher represents the 3rd Assembly District, encompassing all of Butte, Glenn, Sutter, Tehama, and Yuba counties and portions of Placer County.