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Marijuana Growers Risk Being Wiped Out by California Fires
Old 10-12-2017, 14:03   #1
LarryW
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Marijuana Growers Risk Being Wiped Out by California Fires

Well, here's another job for FEMA.

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Marijuana Growers Risk Being Wiped Out by California Fires


For many businesses in northern California, it will take years to rebuild from the wildfires that have decimated the region. For many legal cannabis growers, the destruction could be insurmountable.

At least six marijuana farms have been destroyed, said Hezekiah Allen, executive director at the California Growers Association. That number is likely to rise significantly as communications come back online and people who have evacuated the area are allowed to return and assess damages.

The growers face a challenging outlook because they don’t have access to a key lifeline in the world of agriculture: crop insurance. They also have little, if any, access to loans as banks continue to shy away from businesses selling a product that’s illegal under federal law. If the region receives federal relief, pot farmers can’t get that either. So their cost of rebuilding will be entirely out-of-pocket.

“A lot of folks’ hopes and dreams for legal cannabis are in ashes or covered in smoke right now,” Allen said.

Governor Jerry Brown declared a state of emergency across eight counties as 21 large fires have burned across about 191,000 acres of land as of Thursday morning, according to Cal Fire, the state’s Department of Forestry and Fire Protection. At least 23 people have died, with more than 20,000 evacuated and at least 3,500 structures destroyed. The National Weather Service issued red flag warnings and watches for the region on Wednesday and Thursday, indicating significant risk of increases in wildfire activity.

The size of the marijuana fields destroyed were about a quarter of an acre on average, Allen said. One farm was burned in the Atlas Fire in the Napa Valley, three were lost in the Santa Rosa area and at least two were destroyed in Mendocino.

Narrow Escape

The harrowing tales include one member of the growers association who woke up to a knock on her door at 2 a.m. She and her two children barely escaped their home, which burned to the ground 15 minutes later.

Hard-hit Mendocino County, along with Humboldt and Trinity counties, form the so-called Emerald Triangle -- perhaps the capital of the U.S. cannabis industry.

California legalized marijuana for medicinal use in 1996 and for recreational purposes last November. The industry’s sales will reach $5.8 billion by 2021, according to the research unit of cannabis investment firm Arcview Group. That’s up from $1.8 billion last year. The opportunity has sparked what’s been dubbed as the Green Rush, as growers scramble to get a toehold.

But the price of getting in is high. Farmers have to pay for permits, water forms and licenses to grow the crop. They also contend with some of the same weather-related risks as traditional farmers, but without access to banking services or the ability to write off business expenses on taxes.

“A lot of the growers, the one up in Mendocino in particular who I talked to, she’s really spent her life savings over the last year getting permits and water forms,” Allen said.

Smoke Damage

Even marijuana crops that aren’t engulfed by the flames are at risk. As with wine, smoke damage can alter the taste of the product and reduce its price significantly. Some harvests might be salvageable, but many will be lost.

Cannabis’s illegal federal status has blocked growers from any form of federal crop insurance.

“Since hemp is classified as a prohibited substance under federal law, it is not eligible for federal crop insurance,” Heather Manzano, acting administrator of the Risk Management Agency, said in a statement. The agency oversees government insurance for farmers.

While some cannabis-specific insurance companies have started to appear, they may not cover plants destroyed by the fire and the companies are new largely untested.

One insurer, Cleveland-based Cannasure, only provides casualty or general liability insurance for cannabis crops that are grown indoors.

“It’s fair to say this is an uninsured crop,” Allen said. “These farmers are living year to year.”

https://www.bloomberg.com/news/artic...lifornia-fires
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Old 10-12-2017, 14:34   #2
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That's a real shame.
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Up in smoke
Old 10-12-2017, 15:04   #3
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Up in smoke

Up in smoke
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Old 10-12-2017, 15:14   #4
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Any chance this was intentional? I know the legalization is cutting into profits south of the border...
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Supply & Demand...
Old 10-12-2017, 15:21   #5
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Lightbulb Supply & Demand...

I guess since CA "supply" of weed will be reduced; the "demand" from surrounding states will increase right along with trafficking arrests....
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Old 10-12-2017, 16:37   #6
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These fires wont put a dent in the trade. Someone just trying to drive falling prices up. The dept i used to work for would bust grows of 50 to 100000 plants and it would not push availability or price on whit
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Old 10-12-2017, 19:07   #7
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This has a bit more depth..

Kalifornicate and Colorado derive massive amounts of taxes from the new and growing pot industry. Estimates of 8 BILLION dollar business for Ca..

For a state that is already 120 BILLION in debt,,
Gov Brown is going to feel the burn..


Here is a article: http://thehill.com/homenews/state-wa...lifornia-study
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Old 10-12-2017, 20:28   #8
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Originally Posted by JJ_BPK View Post
This has a bit more depth..

Kalifornicate and Colorado derive massive amounts of taxes from the new and growing pot industry. Estimates of 8 BILLION dollar business for Ca..

For a state that is already 120 BILLION in debt,,
Gov Brown is going to feel the burn..


Here is a article: http://thehill.com/homenews/state-wa...lifornia-study
exactly why I believe in making it legal. It will tax those hippies and drive the price down so they will have to get a real job
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Old 10-12-2017, 20:36   #9
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Interesting insights in these posts.

Imagine trying to run operations for fire crews in situations like that?

I sometimes think of what Mendocino and Humboldt counties were like, say in 1966...with a limited understanding there are some unsettling dynamics in that area today ( interesting customers ...

In Colorado there are a large number of house fires that are grow house (electrical) related which subsequently turn into wildfires so it will be interesting to see what turns up. I saw this the other day which combined with insurance rates on the spectrum of accidents. http://www.denverpost.com/2017/08/25...ic-fatalities/

The extent of the monies and taxes as mentioned are probably just as you imagine... Perhaps leading to a dependency of revenue that may not be there in the future?
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Old 10-12-2017, 21:35   #10
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Hope the fire fighters are wearing oxygen masks.
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Old 10-12-2017, 21:49   #11
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Quote:
Originally Posted by Golf1echo View Post
Interesting insights in these posts.

Imagine trying to run operations for fire crews in situations like that?

I sometimes think of what Mendocino and Humboldt counties were like, say in 1966...with a limited understanding there are some unsettling dynamics in that area today ( interesting customers ...

?
I can tell you what it was like. I was born in Humboldt County and lived there on and off most of my life.

It was loggers, sawmills and fishing. In the 1970's according to a former and now retired deputy I used to work with when the hippies started moving in and growing pot the ranchers would go to their house and tell them get the fuck out. If they did not leave several showed up, drug them out of their homes and burned it to the ground. The FBI starting investigating so my former co worker was told by then Sheriff Gene Cox to go tell the ranchers they could no longer burn the hippies homes down because the FBI was involved, so he did. By the 1980's the dope growing was moving in full force. It is now a complete shit hole of a county full of druggies, no legit jobs you can make a living at and a general cluster F--k.

As a kid my dad drove a logging truck, my mom did not work and we were not rich but did okay. Thanks to many factors that is a dead life now. I miss the California that used to be before the liberals, hippies, druggies and general idiots moved in and took over. I miss riding my horse in the mountains all day or hunting on ranches with my grandfather listing to the hounds. It was a good living and a good place to live in the 50's and 60's and 70's. Thanks to drugs and liberals all that has changed. It makes me sick to go back and see what it has become.
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Old 10-12-2017, 22:31   #12
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I was born in Humboldt County and lived there on and off most of my life.
I thought that you were an Okie! False advertising!!!!

Pat
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Old 10-12-2017, 23:24   #13
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I thought that you were an Okie! False advertising!!!!

Pat
I lived in NW Oklahoma for a while and we used to refer to the area as Oklahoma by the sea. It wasn't the California people think of .....
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Old 10-13-2017, 00:07   #14
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^^^
Sounds like great memories and reminds me of the Olympic Peninsula...with less rain.

Garberville is one of the places that comes to mind, seems to be many factions there now. Even with a legalized growing industry there are always those that will go into the forests, rent housing, build clandestine grow rooms, etc... When you can't afford a house, need to stay off the radar ie. Cartels and illegals or for what ever reasons those elements are more likely to be off grid.
Attached Images
File Type: jpg Calif. Illegal grow sites in forests1.jpg (142.8 KB, 43 views)
File Type: jpg C I G S 2.jpg (135.3 KB, 41 views)
File Type: jpg C I G S 3.jpg (111.8 KB, 40 views)
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Last edited by Golf1echo; 10-13-2017 at 06:52.
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Old 10-13-2017, 06:34   #15
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Poor old Governor Jerry Brown. His aura smiles, he never frowns; soon he'll be president. As for the burning marijuana crops, it makes me wear a happy face. The hippies won't come back, you say
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