Wildfires scorched marijuana crops, possibly complicating California’s rollout of legal sales

By Katie Zezima October 20 at 6:30 PM

The deadly wildfires that ravaged communities and wineries in Northern California also severely damaged numerous marijuana farms, just before the state is expected to fully legalize the drug, in a disaster that could have far-reaching implications for a nascent industry.

At least 34 marijuana farms suffered extensive damage as the wildfires tore across wine country and some of California’s prime marijuana-growing areas. The fires could present challenges to the scheduled Jan. 1 rollout of legal marijuana sales at the start of an industry that is expected to generate billions of dollars in revenue.

In many cases, owners have spent tens of thousands of dollars to become compliant with state law to sell the product. But because the federal government considers marijuana cultivation and sales a criminal enterprise, it remains extremely difficult, if not impossible, for most of the marijuana businesses affected by the fire to access insurance, mortgages and loans to rebuild. Even a charitable fund set up to help marijuana farmers was frozen because a payment processor will not handle cannabis transactions.

Cannabis businesses also are not eligible for any type of federal disaster relief, according to a spokesman for the Federal Emergency Management Agency.

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