The land is the thing that is actually valuable here, so filling that land with a perfect grid of 6 foot craters in exchange for a few dollars is probably a bad call.

The problem isn't that the trees are in the wrong place. The problem is that there are more trees than demand for canned peaches. It's a failure of planning on the part of Del Monte and peach growers.

I agree in principle that reuse is the best imaginable outcome... but You underestimate the labor and cost of machines. I bet it costs $200 to pluck a single tree let alone ship it somewhere else usable.