California Growers Navigate Wildfire Recovery

The Northern California wildfires were finally contained months ago, but local residents, especially those involved in the cannabis industry, will be feeling the effects for a long time. The situation is dire, and there are many negative consequences surfacing as a result.

An estimated 270,000 acres of land was burned by the fires, leaving many people homeless, and many cannabis businesses looking to restart their business from scratch—but some landlords are looking to benefit from others’ misfortunes. According to KTVU, some landlords have mercilessly raised prices on rent, both for residents as well as land use, following the events of the fires. According to California law, “It is illegal to raise the price of items and services more than 10 percent for 30 days after an emergency declaration in California,” notes KTVU. That law was temporarily extended through April 18 by Gov. Jerry Brown.

Los Angeles Times reports that hundreds of growers lost their crops this past October in Sonoma, Napa and Mendocino counties. These losses indicate that despite legal changes in California, the lack of insurance or being able to have proper banking services leaves farmers and other industry members vulnerable when disaster strikes. Since crop insurance companies do not write policies for cannabis businesses, many that lost their crops and were expecting a payout are still experiencing the fallout. Not to mention that cannabis cultivators are ineligible to receive funds from the Federal Emergency Management Agency, which would be a boon for those who are still suffering emotionally and financially.

Since this was one of the state’s deadliest wildfires to date, the devastation is extensive and many crops and areas of farmland were destroyed. This could inevitably affect the price and quality of cannabis, especially during a time when demand is high due to recent legalization and tensions are also wearing thin to do the recent repeal of protections on a federal level.

Although the fires destroyed property as well as the hopes and dreams of cultivators, it has helped the industry’s insurance and banking issues gain visibility. The need for financial services is becoming more apparent, and will hopefully be addressed in the near future.