Wildfire Threat Looms Over California Cannabis Industry
California’s huge cannabis industry, valued at $5 billion, faces a precarious future as wildfire risks intensify and insurance options dwindle. The industry’s vulnerability is exacerbated by the withdrawal of major insurers and the inadequacy of the state’s FAIR plan to provide necessary coverage for cannabis growers.
Rising Risk in Rural Areas
Cannabis, a relatively new yet lucrative crop in California, is predominantly cultivated in rural areas, placing it at a significant risk from wildfires. According to recent research by the Department of Environmental Science Policy and Management at UC Berkeley, cannabis agriculture is more geographically threatened by wildfire than any other crop in the state. Christopher Dillis, the study’s lead author, notes, “Our findings affirm that cannabis agriculture is geographically more threatened by wildfire than any other agricultural crop in California.”
A Critical Agricultural Commodity
Since its commercial licensing in 2018, the cannabis industry has rapidly become one of California’s top five grossing agricultural commodities. Despite the lack of federal recognition as an agricultural crop, California’s cannabis sector generated over $780 million in tax revenues in 2020.
High Fire Hazard Zones
Researchers have conducted a comprehensive analysis of licensed cannabis farms in 11 key cannabis-producing counties. The study revealed that a significant proportion of cannabis farms are situated in high-risk fire zones. Approximately 36% of cannabis cultivation areas, equating to 986 farms, are located in high fire hazard zones, with 24% in very high fire hazard zones. This contrasts sharply with other crops like grapes, which have only 8.8% of their acreage in high fire hazard zones.
Recommendations for Reducing Wildfire Impact
To mitigate the impacts of wildfires, the researchers recommend implementing fire-safety programs, such as managing vegetation and creating fire breaks. They also suggest measures to prevent the exposure of farm workers and crops to wildfire smoke. Furthermore, they advocate for the exploration of crop insurance options for cannabis farmers, similar to those available to other agricultural sectors.
Ongoing Research and Future Steps
The Cannabis Research Center at UC Berkeley is actively conducting a statewide survey to gain a deeper understanding of wildfire impacts on cannabis farms. This survey aims to assess the effects on crops, infrastructure, and farm workers, supported by a grant from California’s Department of Cannabis Control.
Co-author Ted Grantham emphasizes the importance of addressing these challenges, stating, “In light of the sector’s growing economic importance in the state, the vulnerability of cannabis to wildfire should be considered in future cannabis and rural development policies.”
As California’s cannabis industry continues to grapple with these threats, proactive measures and strategic policy development are essential to safeguard the future of this vital sector.