Banking & Finance

Humboldt County Offers $1 Million In Emergency Aid For Local Cultivators

Humboldt County Offers $1 Million In Emergency Aid For Local Cultivators

Cannabis cultivators in Humboldt County, California will be receiving a $1 million emergency grant. The program providing the grant, approved by Humboldt County’s Board of Supervisors, is designed to provide relief to farmers after wholesale cannabis prices plummeted to $400 per pound.

“These pleas for aid and relief stem from the recent bottoming of the cannabis market where the price per pound is now less than the cost to cultivate, process, and distribute that product,” said Scott Adair, Humboldt County Economic Development Director. Adair added that his office had been overwhelmed with desperate requests for assistance.

Per Ganjapreneur, individual farm operators could receive up to $10,000 and collaborative operations could get up to $50,000. Recent survey results showed that a majority of the 50 farmers surveyed wouldn’t be able to meet October tax payments.

Marijuana farmers have also suffered from drought and wildfires, which have been threatening both the cultivator’s own health in addition to that of their plants, not to mention their crop’s monetary value. Additionally, regulatory compliance, transportation, and irrigation are less expensive in other areas of California where cannabis is grown. Last but absolutely in no way least, Humboldt County farmers were found to be at high risk for depression and suicide due to the extreme industry hardships.

“Typically, we don’t replace lost revenue, but we will support activities and expenditures which are designed to help increase revenue for the applicants or to reduce other costs so that the margin of revenue increases,” Adair said.

A 10% share of Humboldt County’s cannabis excise tax funds Project Trellis, a previously established cannabis business assistance program. Because of the dramatic drop in wholesale pricing, Project Trellis is expecting sharp declines as well.

Humboldt County’s Board of Supervisors’ emergency fund request is expected to be approved at the October 5 board meeting.

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