The kind of smoke burning in the northern California wildfires is what some people pay top dollar for.
Thirty-four marijuana farms caught fire in the blaze that has claimed more than 200,000 acres of land in Napa, Sonoma, Mendocino, Solano, Butte and Lake counties, destroying some 8,400 homes and other buildings, displacing nearly 100,000 residents and taking the lives of 42 people.
The marijuana farms, which legally cultivate under state law, are against federal law, and that means they do not qualify for crop insurance or federal assistance of any kind.
One of the cannabis manufacturers affected is CannaCraft, which operates 20 farms and makes more than 100 different products. Millions of dollars has been lost due to the fire, its chief executive says.
Total wildfire losses amount to more than $1 billion, but those are insured losses. Adding in uninsured losses raises that amount significantly, although it is difficult to figure a proper total.
There are between 10,000 and 15,000 marijuana farms in California, according to trade reports, and the industry’s revenue tops $7 billion annually.
Marijuana prices may rise up to 20 percent because of the fire damage and its impact on supply, according to BDS Analytics, which tracks the industry.
As it stands, medicinal marijuana is legal to sell throughout California. Next year, cannabis will be available commercially.
Based on the commercial prospects, many new farms began cultivating marijuana and existing growers expanded operations.
The fire came at the worst time for growers, according to one farmer, because October is harvest season. The fire, which was comprised of many wildfires igniting around the same time, began October 8. After raging through the northern part of the state, it has largely been brought under control, but continues to burn in certain areas.