Feds Pay Peach Growers to Axe Trees and Shrink Harvest Glut
Published Date: 7/31/2026
Rule
Summary
This interim final rule amends the regulatory requirements for the Clingstone Peach Diversion Program (Program). The Program is voluntary, consists of payments for peach tree removal, and is implemented under clause (3) of section 32 of the Agricultural Adjustment Act Amendment of 1935, as amended. The Program is expected to reestablish the purchasing power of clingstone peach growers by making payments to such growers to facilitate reductions in peach production capacity. This action will help to align the domestic supply of clingstone peaches with the market demand for those peaches and thus mitigate the economic effects of systemic oversupply. The parameters established herein will ensure that diversion under this Program is not part of a normal tree replacement cycle for orchard rejuvenation. This rule also announces the Agricultural Marketing Service's intention to request approval by the Office of Management and Budget of new information collection requirements necessary to implement the Program.
Analyzed Economic Effects
7 provisions identified: 2 benefits, 5 costs, 0 mixed.
Payments for Tree Removal: $175/ton
If you are a California clingstone peach grower and participate, you may receive $175 per verifiable ton removed ($150 per ton from AMS and $25 per ton from CCPA). Payments are subject to a minimum of $1,500 per acre and a maximum of $4,000 per acre (combined AMS and CCPA), and AMS funds are available beginning August 3, 2026.
Funding and Expected Scale: $10.5M; 3,000 Acres
USDA (AMS) will provide $9 million and CCPA pledged $1.5 million, for total program funds of $10.5 million to support tree removal. The Program expects removal of at least 3,000 bearing acres, which could lower production by about 50,000 tons and is projected to pay growers about $8.7 million in total for 3,000 acres.
10-Year No-Replant Requirement
If you accept payment, you must agree not to replant clingstone peaches on the same acreage for 10 years after removal. If you replant within 10 years, you must refund all payments received to USDA plus interest on the replanted acreage.
Who Can Apply: 2025 Contract Requirement
To be eligible, growers generally must have had verifiable commercial production under a processor contract for deliveries during the 2025 crop year; non-bearing, dead, or abandoned orchards are not eligible except in certain limited cases. Applications open August 3, 2026 and will be accepted for 30 days on a rolling first-come, first-served basis until AMS funds are allocated.
Removal Deadline: 60 Days After Approval
Approved growers must remove the clingstone peach trees no later than 60 days after CCPA approval. Trees removed on or after October 1, 2025 due to processor bankruptcy may be eligible for reimbursement if removal and past production can be verified.
Federal Payment System and Registration Needed
To get AMS payments you must provide a Tax Identification Number (TIN) or Social Security Number (SSN) and register for a System for Award Management Unique Entity Identifier (SAM UEI); AMS payments will be made only via the Federal Government payment system and there is no alternative payment method. CCPA payments (its $25/ton pledge) will be paid separately by CCPA.
Who Is Excluded: Abandoned Trees and Divested Cooperatives
Dead trees, abandoned orchards, and growers who delivered to a cooperative processor but later divested their cooperative membership rights are not eligible for Program payments. Only current owners who have not contracted to sell the land and who meet other Program conditions may participate.
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