I can absolutely guarantee you the peaches would mostly just rot in that approach.

Their problem is that people just flat out aren't interested/need as many peaches we are growing. So it totally makes sense to change much of that land to do another crop. Peaches are not necessarily the most efficient, or healthy nutritious option that the land could possible support.

The people who might be in need of that fruit are likely no where near the orchards. So the direct approach is right out.

Now this is where organizations like food banks can and do step in as able. They have people who are intrinsically dedicated to make it work out for people to have food even if the capitalist concerns don't make sense. Sure, they can take over logistics when no one else wants them (my family has volunteered and dealt with all sorts of farmer surplus, including separating rot from viable food). Ultimately even they wouldn't want an oversupply of any particular crop, as the hungry need diverse nutrition, not just a ton of peaches. As it stands a fair amount of the food is ruined before it can be distributed even with food bank efforts already.