Small-scale cannabis farmers in California are calling it quits, crushed by crop damage from devastating wildfires and sliding prices, and industry experts expect the exodus to continue near-term in the largest pot market in the United States.
Unlike traditional crops, pot cultivators cannot claim government monetary support for damage from extreme weather because cannabis remains on the federal list of controlled substances.
"These operators don't have the ability to go to FEMA (Federal Emergency Management Agency) to get reimbursement for losses in a federal disaster zone because of the federal classification," said Anthony Coniglio of NewLake Capital Partners. California has also seen prices plummeting since 2021 due to oversupply.
The Golden State has witnessed an influx of new producers as demand peaked during the pandemic when wholesale flower prices went above $2,000 per pound, but the buzz has waned and prices are currently around $1,200 per pound.
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