The Northern California wildfires have destroyed many structures and even a number of marijuana farms in Mendocino County.
What’s worse is that there is no insurance on these crops.
The secretary of the Mendocino Cannabis Industry Association, Nikki Lastreto commented, “Nobody right now has insurance. They might have insurance on their house, but not on their crop.”
Federal law prohibits people from insuring marijuana.
The fact that millions have been invested into these farms is tragic. According to Derek Peterson, the CEO of Terra tech, some farmers invest as much as $5 million into their facilities and as much as 3 million to grow the marijuana.
“If their facilities burn down, a lot of these people won’t be able to get any economic relief for them from an insurance claim,” remarked Peterson.
“There’s no mechanism for recovery to repay them for their loss. It’s a tremendous risk for these people.”
According to the California Cannabis Industry Association, there are 10,000 to 15,000 marijuana farms. It is too early to say exactly how many have burned down during the fires.
Josh Drayton, the spokesman for the California Cannabis Industry Association said that “the devastation is going to be larger than anybody would hope it to be.”
There are over 20 wildfires burning in northern California and the state’s governor, Jerry Brown, has declared a state of emergency in eight counties.