California Wildfire Aftermath Could See Marijuana Prices Increase
One thing that has been on everyone's minds this week has been what will happen in the wake of the fires that have ravaged Northern California. It is estimated that over 200,000 acres of land have been destroyed, 5,700 buildings have burned and at least 40 people have died. The wildfire aftermath is severe, but what are some of the long-term effects we can expect to see?
As the fires began to rage, there were worries over the effect they would have on this year's marijuana crop. We can now see that the effect has been crushing. Cannabis farms have been destroyed by the flames. For those that haven't burned, many of the crops have been tainted by ash and smoke, making them unfit for sale.
Marijuana Could Get More Expensive
Harvest season in California runs from September to November. This year's crop, the first legal crop in the state, would have supplied California dispensaries through to the end of next year. The wildfire aftermath will likely see a shortage of marijuana in the coming months and even into 2018.
Growers in the region are not covered by crop insurance because of the nature of what they grow and are having difficulties securing relief aid that could help them start to recover.
The fires could not have come at a worse time. With California set to go recreational in January, demand is expected to skyrocket. Due to the fires, growers can no longer meet this demand. As a result of this, California could see marijuana prices go up as much as 20% in the coming months.
And it might not be just California that is affected. The state produces more than half of all marijuana consumed in the United States. We might very well see price hikes in other parts of the country as well.
Growers and the cannabis industry are facing short term and long term effects in the wildfire aftermath. One of the worst wildfires in California's history is going to take some time to recover from.
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