PART 82—CLINGSTONE PEACH DIVERSION PROGRAM

Subtitle B—Regulations of the Department of Agriculture › Chapter I—Agricultural Marketing Service (Standards, Inspections, Marketing Practices), Department of Agriculture › Subchapter D—Export and Domestic Consumption Programs

§ 82.1 Applicability.

Pursuant to the authority conferred by Section 32 of the Act of August 24, 1935, as amended (7 U.S.C. 612c) (Section 32), the Agricultural Marketing Service (AMS) will make payment to California growers who divert clingstone peaches by removing trees on which the fruit is produced in accordance with the terms and conditions set forth herein.

§ 82.2 Administration.

The Clingstone Peach Diversion Program will be administered under the general direction and supervision of the Deputy Administrator, Specialty Crops Program, Agricultural Marketing Service, United States Department of Agriculture, and will be implemented in cooperation with the California Canning Peach Association (CCPA). CCPA, or its authorized representative, does not have authority to modify or waive any of the provisions of this subpart. The Administrator or delegatee, in the Administrator's or delegatee's sole discretion, may modify deadlines to serve the goals of the Program. In all cases, payments under this part are subject to the availability of funds.

§ 82.3 Definitions. Administrator means the Administrator of AMS. AMS means the Agricultural Marketing Service of the U.S. Department of Agriculture.

Application means the “Application for Clingstone Peach Diversion Program” form as approved by the Office of Management and Budget (OMB). CCPA means the California Canning Peach Association, a grower-owned marketing and bargaining cooperative representing the clingstone peach industry in California.

Diversion means the removal of clingstone peach trees in accordance with Program parameters as defined by this part.

Grower means an individual, partnership, association, or corporation who grows clingstone peaches for canning.

Notification means the “Notification of Clingstone Peach Tree Removal” form approved by OMB.

Program means the Clingstone Peach Diversion Program as authorized by section 32 of the Agricultural Adjustment Act Amendment of 1935, as amended, and as established by this part.

Removal or removed means that the clingstone peach trees are no longer standing and capable of producing a clingstone peach crop. The grower can accomplish removal by any means the grower desires. Grafting another type of tree, other than a clingstone peach variety, to the rootstock remaining after the clingstone peach tree trunk has been removed will qualify as removal under this Program.

USDA means the United States Department of Agriculture.

§ 82.4 Length of Program.

This Program is effective August 3, 2026, through May 31, 2036. Grower applications to participate in the Program will begin being accepted August 3, 2026, and will continue to be accepted until September 1, 2026. A grower diverting clingstone peaches by removing peach trees must complete the diversion no later than 60 days after the grower has been notified they are approved to participate in the Program.

§ 82.5 General requirements.

(a) To be eligible for the Program, the trees to be removed must be clingstone peach type and be fruit-bearing, or non-bearing, immature trees that were planted under contract prior to July 1, 2025.

(b) Orchards that were not under contract with a processor for the 2025 crop, abandoned orchards, and dead trees will not qualify for participation.

(c) Growers who delivered their 2025 clingstone peach crop to a cooperative processor as a member of the cooperative, and subsequently divested their cooperative membership rights, will not be eligible to participate in the Program or receive compensation for removal of their clingstone peach trees.

(d) The block of trees considered for removal under the Program must be easily definable by separations from other blocks of similar but non-participating trees and contain at least 1,000 eligible trees or an entire orchard.

(e) Except as otherwise provided in paragraph (f) of this section, clingstone peach tree removal shall not take place until the grower has been informed, in writing, that the grower's application has been approved. Growers will have 60 days after the notification date of Program approval to complete the diversion.

(f) Trees removed by a grower after October 1, 2025, but prior to the effective date of the Program, may be eligible for participation under the Program provided that:

(1) The orchard was contracted with a processor for delivery of clingstone peaches for crop year 2025;

(2) Such contract was subsequently rejected for 2026 and future crop year deliveries;

(3) 2025 crop year production can be verified;

(4) Tree removal can be verified; and

(5) The applicant meets all other Program terms and conditions.

(g) Non-bearing, immature orchards previously under contract with a processor may be eligible for the minimum payment under § 82.6(a) provided that:

(1) Trees were planted under a contractual agreement prior to July 1, 2025;

(2) Tree removal can be verified; and

(3) The applicant meets all other Program terms and conditions.

(h) Any grower participating in the Program must agree not to replant clingstone peach trees on the land cleared under the Program through May 31, 2036. Participants bear responsibility for ensuring that trees are not replanted, whether by themselves, by successors to the land, or by any other person, until after May 31, 2036. If trees are replanted before May 31, 2036, by any person or persons, participants must refund all USDA payments, with interest, made in connection with such participation in the Program.

(i) Any grower participating in the Program must certify that no 2026 crop year peach production has been, or will be, harvested or marketed from the acreage approved for participation in the Program.

§ 82.6 Rate of payment; total payments.

(a) Applications to participate in the Program will be processed on a first-come, first-served basis. Approved growers will be paid $150 per ton by AMS based on their verifiable 2025 crop year production of clingstone peaches from the block of clingstone peach trees removed under the Program, up to a maximum of $3,429 per acre (up to $4,000 per acre total including CCPA pledged funds). Regardless of verifiable 2025 production, approved growers will receive a minimum of $1,286 per acre from (up to $1,500 per acre total including CCPA pledged funds).

(b) Grower payments, as described in paragraph (a) of this section, are limited to payments that will be made by AMS. Payments made to growers by AMS are exclusive of any amounts that may or may not be pledged to be paid, or are actually paid, by CCPA to growers who participate in the Program. AMS will not guarantee any payments that CCPA has pledged to pay to approved growers for clingstone peach tree removal in conjunction with the Program and will not be held liable for any non-performance of such promises made by CCPA.

(c) Payment under paragraph (a) of this section will only be made after tree removal has been verified by the CCPA staff.

(d) AMS payments to growers under the Program are intended to compensate such growers for the costs of tree removal. AMS will not make any other payments or concessions with respect to such removals other than the amount(s) stipulated in paragraph (a) of this section. The grower will be solely responsible for arranging, contracting, executing, and/or paying for the tree removal on the approved acreage.

(e) Total available funding under the Program is limited to $9,000,000 of AMS funds. No additional expenditures shall be made unless the Administrator or delegatee, in their sole and exclusive discretion, shall, in writing, declare otherwise.

§ 82.7 Eligibility for payment.

(a) If total applications for payment do not exceed $9,000,000, less the costs of administration, grower payments, as set forth in § 82.6, will be made under the Program to any grower of clingstone peaches who complies with the requirements in § 82.8 and all other terms and conditions in this part.

(b) If applications for participation in the Program authorized by this part exceed $9,000,000, less administration costs, CCPA will approve the applications (subject to the requirements in § 82.8) in the order in which the completed applications are received in the CCPA office to the extent that funds are available. Applications received after total outlays exceed the amount of money available will be denied.

§ 82.8 Application and approval for participation.

(a) Applications will be reviewed for program compliance and approved or disapproved by CCPA office personnel.

(b) Applications for participation in the Program can be obtained from the CCPA office at 2600 River Plaza Drive, Suite 200, Sacramento, CA 95833; telephone: (916) 925-9131; email: treepull@calpeach.com.

(c) Any grower desiring to participate in the Program must file an application with CCPA prior to September 1, 2026. The application shall be accompanied by a copy of any two of the following four documents: Plot Map from the County Assessor Office; Irrigation Tax Bill; County Property Tax Bill; or any other documents containing an Assessor's Parcel Number. Such application shall include at least the following information:

(1) The name, address, telephone number, tax identification number or Social Security number of the grower, and System for Award Management Unique Entity Identifier Number (SAM UEI);

(2) The location and total acreage, or number of trees, to be diverted;

(3) The net acreage to be diverted;

(4) The 2025 clingstone peach production from the trees (not required for eligible immature, non-bearing trees);

(5) If the land with respect to which the clingstone peach trees will be removed is subject to a mortgage, statutory lien, or other equity interest, the grower must obtain from the holder of such interest a written statement that such party agrees to the enrollment of such land in the Program to the extent determined necessary by AMS. Obtaining such assent shall be the responsibility of the applicant who shall alone bear any responsibilities which may extend to such third parties;

(6) A statement that the applicant agrees to comply with all of the regulations established for the Program;

(7) The applicant shall sign the application certifying that the information contained in the application is true and correct; and

(8) The names of the processor(s) who were contracted to receive the clingstone peaches from the grower in 2025.

(d) CCPA shall review each application received by the deadline to determine whether all the required information has been provided and that the information is correct.

(e) After application reviews and confirmation of eligible trees are completed, CCPA shall notify each applicant, in writing, as to whether or not their application has been approved and the tonnage approved for payment after removal. If an application is not approved, the notification shall specify the reason(s) for disapproval.

(f) After the application reviews and confirmation of eligible trees are completed, the CCPA shall notify the applicant, in writing, as to whether or not the application has been approved and the tonnage approved for payment after removal. If an application is not approved, the notification shall specify the reason(s) for disapproval.

§ 82.9 Inspection and certification of diversion.

Removal of clingstone peach trees under the Program must be completed within 60 days of receipt of the Notification of Clingstone Peach Tree Removal form. When the removal of the clingstone peach trees is complete, the grower will notify CCPA on the Notification of Clingstone Peach Tree Removal form provided by CCPA. CCPA will certify that the trees approved for removal from the acreage have been removed and notify AMS to release payment.

§ 82.10 Claim for payment.

To obtain payment for the trees removed, the grower must submit to CCPA by December 31, 2026, a completed Notification of Clingstone Peach Tree Removal form provided by CCPA. Such form shall include CCPA's certification that the qualifying trees from the acreage have been removed. AMS will then issue payment authorization to the grower in the amount of $150 per eligible ton removed, or the amount consistent with the minimum and maximum payment per acre as specified in § 82.6. AMS has no authority over the issuance of payments made to growers by CCPA under the Program.

§ 82.11 Compliance with program provisions.

If AMS or CCPA determines that any provision(s) of this part have not been complied with by the grower, the grower will not be entitled to diversion payments in connection with tree removal. If a grower does not comply with all the terms of this part, including the requirement specified in § 82.5(h), the grower must refund any payment made in connection with the Program, and will also be liable for any other damages incurred as a result of such failure. AMS may deny any grower the right to participate in the Program or the right to receive payments in connection with any diversion previously made under the Program, or both, if AMS determines that:

(a) The grower has failed to properly remove the clingstone peach trees from the applicable acreage, regardless of whether such failure was caused directly by the grower or by any other person or persons;

(b) The grower has not acted in good faith, or has engaged in a scheme, fraud, or device, in connection with any activity under this program; or

(c) The grower has failed to discharge fully any obligation assumed by him or her under this program.

§ 82.12 Inspection of premises.

The grower must permit authorized representatives of USDA or the CCPA, at any reasonable time, to have access to their premises to inspect and examine the acreage where the trees were removed as well as any records pertaining to that acreage to determine compliance with the provisions of this part.

§ 82.13 Records and accounts.

(a) The growers participating in this program must keep accurate records and accounts showing the details relative to the clingstone peach tree removal, including the contract entered into with any firm removing the trees, as well as the invoices.

(b) The growers must permit authorized representatives of USDA, the CCPA, and the Government Accountability Office at any reasonable time to inspect, examine, and make copies of such records and accounts to determine compliance with provisions of this part. Such records and accounts must be retained for ten years after the date of payment to the grower under the program, or for ten years after the date of any audit of records by USDA, whichever is later. Any destruction of records by the grower at any time will be at the risk of the grower when there is reason to know, believe, or suspect that matters may be or could be in dispute or remain in dispute.

§ 82.14 Offset, assignment, and prompt payment.

(a) Any payment or portion thereof due any person under this part shall be allowed without regard to questions of title under State law, and without regard to any claim or lien against the crop proceeds thereof in favor of the grower or any other creditors except agencies of the U.S. Government.

(b) Payments which are earned by a grower under this program may be assigned in the same manner as allowed under the provisions of 7 CFR part 1404.

§ 82.15 Appeals.

Any grower who is dissatisfied with a determination made pursuant to this part may make a request for reconsideration or appeal of such determination. The Deputy Administrator of the Specialty Crop Program shall establish the procedure for such appeals.

§ 82.16 Refunds; joint and several liability.

(a) In the event there is a failure to comply with any term, requirement, or condition for payment arising under the application of this part, and if any refund of a payment to AMS shall otherwise become due in connection with the application of this part, all payments made under this part to any grower shall be refunded to AMS together with interest.

(b) All growers signing an application for payment as having an interest in such payment shall be jointly and severally liable for any refund, including related charges, that is determined to be due for any reason under the terms and conditions of the application of this part.

(c) Interest shall be applicable to refunds required of any grower under this part if AMS determines that payments or other assistance were provided to a grower who was not eligible for such assistance. Such interest shall be charged at the rate of interest that the United States Treasury charges the Commodity Credit Corporation (CCC) for funds, as of the date AMS made benefits available to such grower. Such interest shall accrue from the date of repayment or the date interest increases as determined in accordance with applicable regulations. AMS may waive the accrual of interest if AMS determines that the cause of the erroneous determination was not due to any action of the grower.

(d) Interest determined in accordance with paragraph (c) of this section may be waived on refunds required of the grower when there was no intentional noncompliance on the part of the grower, as determined by AMS. Such decision to waive or not waive the interest shall be at the discretion of the Administrator or delegatee.

(e) Growers must refund to AMS any excess payments, as determined by AMS, with respect to such application. Such determinations shall be made by the Administrator or delegatee.

(f) In the event that a benefit under this part was provided as the result of erroneous information provided by the grower, or was erroneously or improperly paid for any other reason, the benefit must be repaid with any applicable interest, subject to paragraphs (c) and (d) of this section.

§ 82.17 Death, incompetency, or disappearance.

In the case of death, incompetency, disappearance, or dissolution of a clingstone peach grower that is eligible to receive benefits in accordance with this part, any person or persons who will, under 7 CFR part 707 of this title, be eligible for payments and benefits covered by this part, may receive such benefits otherwise due the actual producer, as determined appropriate by AMS.