USDA Establishes a Clingstone Peach Diversion Program

Providing Economic Relief to Farmers Amidst Changing Market Conditions

The U.S. Department of Agriculture (USDA) announced today a Clingstone Peach Diversion Program to provide reimbursements to producers for the voluntary removal of peach trees. The program will further USDA's goal to put farmers first by addressing industry needs amid changing market conditions.

The Clingstone Peach Diversion Program will reduce the domestic supply of clingstone peaches to better align with market demand for peaches for canning while providing economic relief to peach growers faced with excess production capacity. It will also facilitate land transition to the production of other commodities. Under the program, up to $9 million will be distributed to qualified growers for removal of their clingstone peach trees. To be eligible for the program, trees must currently be bearing or be young trees of pre-bearing age that were planted under a contract. Dead trees or previously abandoned orchards would not be eligible.

The California Canning Peach Association (CCPA), a nonprofit cooperative bargaining association owned and directed by its member growers who collectively produce approximately 85% of California's clingstone peaches, recommended the program to USDA. The association requested USDA support after a major processor filed for bankruptcy, leading to the closure of a key cannery that many clingstone peach growers had longstanding supply contracts with.

The program was established through an interim final rule published in the Federal Register on July 31, 2026, and becomes effective Aug. 3, 2026.

Applications for participation must be received by Sept. 1, 2026, to be considered.

For more information about this announcement, contact USDA's Market Development Division at (503) 326-2724. Questions about the application process can be directed to CCPA at (916) 925-9131; email: [email protected].

The Agricultural Adjustment Act Amendment of 1935 was established to address economic challenges faced by U.S. farmers with the goal of elevating farm prices, reducing agricultural surpluses, and protecting farm incomes through federal intervention and funding mechanisms. Section 32 authorizes USDA to devote funds to reestablish farmers' purchasing power by making payments in connection with the normal production of any agricultural commodity for domestic consumption.

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