Sales of recreational Marijuana in California may be in trouble as several cannabis farms are being threatened by uncontrollable wildfires raging across the state. Multiple blazes have already destroyed cannabis crops in Mendocino County, and weed growers can’t do much about it.
Marijuana farms will lose everything
As reported by CNN Money, California marijuana farms do not have insurance to cover losses to crops.
They may have coverage for their homes or buildings, but not the plants themselves. Under federal law, marijuana is an illegal Schedule I drug, making it impossible for insurance companies to write policies for cannabis growers.
Industry experts estimate marijuana farmers invest nearly $8 million setting up growing facilities. If a farm experiences a partial or total loss from fire, the owner has essentially no way of recouping that money. Some farms are mitigating their losses and harvesting plants early before smoke or fire reaches their crops. For many in Mendocino and Sonoma Counties, it is already too late as their farms either are currently on fire or burned to ash.
Sonoma County officials estimate as many as 9,000 pot farms could be in danger.
While it is currently unknown exactly how many of the state’s 15,000 marijuana growers have been affected so far, Josh Drayton of the California Cannabis Industry Association told CNN that “the devastation is going to be larger than anybody would hope it to be.”
Out of control California wildfires
As of late, the 22 wildfires in California have consumed nearly 170,000 acres of land, killing over 20 people and destroying thousands of homes and businesses. The U.S. Forest Service has almost 1,500 firefighters in California trying to extinguish the flames. Eight counties, including Napa, Mendocino, and Sonoma, are under a disaster declaration issued by Governor Jerry Brown.
Many schools remain closed, and airports are reporting canceled or delayed flights in and out of the area.
Weed sales will continue as planned
Despite wildfires threatening numerous California pot farms, some are saying the blazes won’t ruin weed sales in the state. Marijuana growing facilities are spread out all over the state and will likely have enough supply when retail marijuana sales ultimately begin in January. However, the wildfires are lousy timing for cannabis growers near the blazes who have invested millions of dollars just to lose their investment before making even one weed sale.