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Emerald Triangle communities were built on cannabis. Legalization has pushed them to the brink

Joseph Felice (right) and Kim Payne wait in line to receive food at the Trinity County Food Bank distribution at the Trinity County Fairgrounds on Feb. 8, 2023. Photo by Martin do Nascimento, CalMatters
Martin do Nascimento
/
CalMatters
Joseph Felice (right) and Kim Payne wait in line to receive food at the Trinity County Food Bank distribution at the Trinity County Fairgrounds on Feb. 8, 2023. Photo by Martin do Nascimento, CalMatters

Cannabis has been king in this rural area of northern California. But as prices plummet, communities and business owners are hurting, with no clear solutions in sight. Many blame Proposition 64 for undermining small growers.

HAYFORK 鈥 It鈥檚 shortly before 8 a.m. and a touch above freezing at the Trinity County Fairgrounds. The food bank鈥檚 February distribution won鈥檛 begin for another half hour, but the line of cars already stretches into a third row of the parking lot.

Joseph Felice, his red Dodge pickup idling with the heat cranked up, arrived around 7 to secure a spot near the front 鈥 eighth, to be exact 鈥 and ensure that he gets his pick of this month鈥檚 harvest: frozen catfish filets, eggplant, winter squash, potatoes, cans of mixed fruit, cartons of milk. Getting here early is crucial, because by the time the final cars roll through some two hours later 鈥 210 families served 鈥 all that鈥檚 left are a few packages of diapers and noodles.

Things are getting desperate in this remote, mountainous community in far northern California, where cannabis is king 鈥 the economy, the culture, the everything. Over the past two years, the price of weed has plummeted and people are broke.

The monthly food bank distribution moved from a church to the fairgrounds last summer to accommodate surging demand. There鈥檚 only one sit-down restaurant left in town, a Mexican joint that closes every day at 6. Some residents have fled for Oklahoma, where it鈥檚 easier for cannabis cultivators to get licensed. Others are stuck, unable to unload their properties amid an abundance of supply and a dearth of demand.

鈥淚 don鈥檛 see the same faces that I did before,鈥 said Felice, 67, who performed maintenance work for a local grower for five years, until they called it quits at the end of last season.

Felice lost not just his income, but also free housing on the farm. The food distribution is now a crucial bridge between Social Security checks and trips to Redding, 60 miles away, where he can get cheaper groceries.

鈥淚 had plenty of money working out there,鈥 Felice said. 鈥淏ut now that it鈥檚 gone, you have to do something.鈥

Volunteers Terry Scovil (center), and Shendi Klopfer load the car of a resident with food.
Martin do Nascimento
/
CalMatters
Volunteers Terry Scovil (center), and Shendi Klopfer load the car of a resident with food.

Just what that something might be for Hayfork 鈥 and the rest of the famous Emerald Triangle of Humboldt, Mendocino and Trinity counties 鈥 is unclear.

For decades before California legalized recreational cannabis in 2016, this rural region of about 245,000 people was the base of weed cultivation for the entire country. The effects of the price crash, which has been , can be felt throughout the three counties, both within the industry and far outside of it.

Cultivators who can barely make ends meet are laying off employees, slashing expenses or shutting down their farms. That means money isn鈥檛 flowing into local businesses, nonprofits are getting fewer generous cash donations in brown paper bags, and local governments are collecting less in sales and property taxes.

Workers who spent their whole lives in the cannabis industry are suddenly looking around for new careers that may not be there. Store clerks, gas station attendants and restaurant servers who relied on their patronage now find themselves with reduced hours, meager tips or out of a job altogether.

A sense of despair and heartbreak has taken hold in many communities. People whisper about friends who are thinking about divorce or who killed themselves because they could not handle the financial devastation. And the pain is compounded by a feeling that their suffering has been all but invisible, overlooked by most Californians and dismissed by government officials who have never made good on the promises of legalization.

鈥淲e鈥檙e constantly at war. That鈥檚 how it feels,鈥 said Adrien Keys, president of the , a trade association for the local legal cannabis industry.

Hayfork on Feb. 7, 2023.
Martin do Nascimento
/
CalMatters
Hayfork on Feb. 7, 2023.

These communities have been here before, stuck in a boom-and-bust cycle that played out with gold mining and cattle ranching and fishing. The last time, , cannabis cultivation flourished after the legalization of medical marijuana and filled the void. Now it鈥檚 unclear whether there鈥檚 anything left to sustain the local economies.

Some imagine that growing tourism can be the salvation, or attracting new residents with remote jobs and a desire to live way off the grid, or perhaps a logging revival driven by the urgent need to thin out California鈥檚 wildfire-prone forests. Others hope that a cannabis turnaround might still be possible.

But for a small, isolated town such as Hayfork 鈥 population: 2,300; high school student body: 88; empty sawmills: two 鈥 the answers are not obvious. The fear that the community could ultimately wither away is real.

鈥淟ong-term, I鈥檓 worried about it,鈥 said Scott Murrison, a 68-year resident of Hayfork who owns half a dozen local businesses, including the gas station and mini mart (revenues down 10-15% over the past few years), a grocery store (down by as much as a third), the laundromat (bringing in about half of what it did when it opened a decade ago), a bar (stabilized since adding food to the menu), a ranch (hanging on, because there鈥檚 still demand for locally-raised beef) and a couple of greenhouses (leased to his nephew, who is not growing cannabis this year).

Scott Murrison inside a hoop house full of unused cannabis growing equipment in Hayfork on Feb. 7, 2023.
Martin do Nascimento
/
CalMatters
Scott Murrison inside a hoop house full of unused cannabis growing equipment in Hayfork on Feb. 7, 2023.

Without any real opportunities for young people coming out of school, Murrison said, they will have to move away, leaving Hayfork without a future.

鈥淎 good, viable community needs those families and the young people,鈥 he said. 鈥淎 bunch of old people are just boring.鈥

Boom and bust

It wasn鈥檛 supposed to go this way.

Cannabis should have been the sustainable alternative to gold and timber, a renewable resource that can be replanted each year. For a long time, it was.

Despite the challenges of growing an illegal crop, including enforcement raids that still scar residents, the 鈥渨ar on drugs鈥 kept product scarce and prices high. The lure of easy cash attracted people from around the world to the Emerald Triangle, an annual flow of 鈥渢rimmigrants鈥 who could walk away from the fall harvest season with thousands of dollars in their pockets, much of which was spent locally.

鈥淓verybody was making so much money it was insane,鈥 Murrison said. 鈥淵ou could be here by accident, you could make money. Either trimming or growing or hauling water or if you had equipment, leveling spots or digging holes.鈥

Then came , the ballot initiative approved by California voters in 2016 that finally legalized recreational cannabis use and commercial sales in the state, though they remain illegal under federal law. Proponents pitched it as both a social justice measure and a boon for tax revenues.

But the 鈥済reen rush鈥 that resulted has arguably harmed the Emerald Triangle more than it helped.

Pots full of soil sit unused and growing weeds on Scott Murrison鈥檚 land in Hayfork on Feb. 7 2023.
Martin do Nascimento
/
CalMatters
Pots full of soil sit unused and growing weeds on Scott Murrison鈥檚 land in Hayfork on Feb. 7 2023.

New farmers, sometimes licensed and often not, streamed in, flooding the market with cannabis. A cap on the size of farms intended to give small growers a head start was , opening the door to competing cultivation hubs in other regions of California with looser restrictions. And with most local jurisdictions , the legal market has been unable to absorb the glut, resulting in plunging prices and a vicious cycle in which farmers grow even more weed to make up for it.

Cultivators who might have commanded more than $1,000 for a pound of cannabis just a couple years ago said it is now selling for a few hundred dollars, not enough to break even with their expenses, taxes and fees.

Commercial cannabis sales in California last year to $5.3 billion, according to just-released , the first decline since it became legal in 2018 and a further cramp on the industry. from $251.3 million in the third quarter of 2022 to $221.6 million in the fourth quarter.

鈥淵ou can鈥檛 keep printing a dollar,鈥 said , who represents Hayfork and nearby Douglas City, where he said business at his grocery store is down an estimated 20%, a decline he expects is less than many other shops in town.

Some parts of the Emerald Triangle are better positioned to weather the cannabis downturn; the coast is a tourist draw, the newly rechristened Cal Poly Humboldt in Arcata is and there are government jobs in the county seats.

But things are precarious in the vast rural expanses, which is most of Trinity County, where there are no incorporated cities. It has one of the smallest and poorest populations of any county in California 鈥 just 16,000 residents and a median household of about $42,000 a year. Outside of the Trinity Alps Wilderness in its northern reaches, there is little economy beyond weed.

鈥淚t鈥檚 what we got,鈥 said Gogan, who dismisses the possibility of tourism or any other industry offsetting cannabis losses as delusional. 鈥淣o one鈥檚 knocking the door down.鈥

Like many locals, he dreams that, with the exodus of cultivators and a drop in production, cannabis prices could rebound slightly. Some are noticing a from the bleak depths of last year, when the most distressed farmers offloaded their product for fire-sale prices below $100 per pound, or simply destroyed crops they couldn鈥檛 sell.

There have been nascent efforts at the state Capitol to help small cannabis growers. Newsom and legislators agreed last year to after farmers from the Emerald Triangle lobbied aggressively for relief. But the intervention is far from enough to ensure their future in a turbulent cannabis market.

State Sen. , a Democrat who represents the north coast, blamed Proposition 64 for setting up family farmers for failure with a litany of 鈥渟uffocating rules.鈥 He is preparing to introduce legislation this spring that could undo some of those regulations for small growers, including an 鈥渁ntiquated, cockamamie licensing structure鈥 that requires them to keep paying annual fees even if they fallow their land because of the price drop and a ban on selling cannabis directly to consumers, something that is allowed for other agricultural products.

鈥淭hese are solutions that will help stabilize the market and lift up family farmers for generations to come,鈥 McGuire said. 鈥淭he state needs to have a backbone to get it done.鈥

Newsom, who the 鈥減oster child鈥 for 鈥渆verything that goes wrong鈥 with Proposition 64, declined a request to discuss what鈥檚 happening in California鈥檚 historic cannabis communities. A spokesperson directed CalMatters to the Department of Cannabis Control, which did not make Director Nicole Elliott or anyone else available for an interview.

In a statement, spokesperson David Hafner said the department has 鈥渕ade a point of regularly monitoring and visiting the Emerald Triangle and engaging directly with licensees to understand their challenges in real time.鈥

Hafner said the department has advanced 鈥渟everal policies and programs that have directly or indirectly supported legacy growers in the Emerald Triangle,鈥 including granting more than 1,000 fee waivers to cultivators in the region, revising regulations to more closely align with traditional farming practices and providing $40 million to bolster licensing efforts in the three counties.

鈥淭he Department stands ready to assist policymakers,鈥 Hafner said, 鈥渋n developing actions that improve the legal cannabis market.鈥

Though growers in the Emerald Triangle have been sharply critical of how the state has regulated cannabis, particularly its early decision to forgo a strict acreage cap, one recent development may be promising: In January, Elliott from the state Department of Justice about what federal legal risk California would face if it negotiated agreements with other states to allow cannabis commerce between them.

That could eventually open a pathway for growers to export their weed out of California, a market expansion that some believe is the kick-start that their operations need.

An increasing strain

The escape hatch may be closing for those seeking a way out of the industry.

When the value of cannabis dropped, so did the worth of the properties where it鈥檚 grown 鈥 even more so for the many farmers who, because of , have yet to receive final approval for their state-issued cultivation licenses. After years of operating on provisional licenses, they still do not technically have a legal business to sell to an interested buyer, if they could even find one.

Some are simply abandoning the properties that they have built into farms with greenhouses and irrigation systems, though evidence of this dilemma is anecdotal. The Trinity County Assessor鈥檚 Office said it could not provide data on recent property sales levels or prices.

鈥淭here鈥檚 no way I could get out of my property now what I put into it,鈥 said Keys of the Trinity County Agriculture Alliance, who figures he would be forced to walk away entirely if he stopped growing. 鈥淚 don鈥檛 know if I could sell it at all.鈥

Buildings for cannabis growing sit unused on Scott Murisson鈥檚 land in Hayfork on Feb. 7, 2023.
Martin do Nascimento
/
CalMatters
Buildings for cannabis growing sit unused on Scott Murisson鈥檚 land in Hayfork on Feb. 7, 2023.

For those residents who stay, the strain is only deepening.

The number of people in Trinity County enrolled in CalFresh, the state鈥檚 monthly food benefits program, in December was 31% higher than the year before and more than 71% higher than the same period in 2019, before the coronavirus pandemic and inflation crisis, according to by the California Department of Social Services. That鈥檚 nearly three times the rate of increase for the entire state.

Jeffry England, executive director of the , said his organization is handing out two and a half times as much food as when he took over the position six years ago. He estimates that the food bank serves about 1,200 families per month, as much as a fifth of the whole county鈥檚 population. It has added three new distribution sites in the past year.

鈥淚t鈥檚 getting really bad,鈥 England said. 鈥淭here are some of them who are in line at the food bank who used to be our donors.鈥

Jeff England manages the Trinity County Food Bank distribution at the Trinity County Fairgrounds on Feb. 8, 2023.
Martin do Nascimento
/
CalMatters
Jeff England manages the Trinity County Food Bank distribution at the Trinity County Fairgrounds on Feb. 8, 2023.

Not everyone who is struggling dreams of leaving Hayfork behind.

Herlinda Vang, 54, arrived about seven years ago from the Fresno area, where she worked as a social worker at a nonprofit and grew vegetables near Clovis. Sensing the opportunity of recreational legalization, she moved months before the passage of Proposition 64 to start a cannabis farm.

Vang has come to appreciate how safe and quiet the community is compared to a big city, where she worried about her youngest children, now 14 and 11 years old. She can hear the birds when she wakes up in the morning.

鈥淲hat I鈥檓 doing is also helping other people, saving other people鈥檚 life, too,鈥 she said. 鈥淪o that is something that I enjoy doing.鈥

Herlinda Vang in Hayfork on Feb. 7, 2023.
Martin do Nascimento
/
CalMatters
Herlinda Vang in Hayfork on Feb. 7, 2023.

But last year, Vang had difficulty getting county approvals and wasn鈥檛 able to start growing until mid-July, about six weeks later than she wanted. Her plants were small by harvest time, leaving her with less to sell at the already reduced prices.

Even as she is making less than a third per pound now compared to when she first started growing, Vang remains committed to her farm for at least another few years to see if things will turn around 鈥 especially if interstate trade opens up and expands the market.

Without many other skills or job prospects locally, she doesn鈥檛 expect she could make much more money than she does now trying to find more traditional work. She also loves that, on her farm, she sets her own rules and schedule, and is able to prioritize being a mother as well.

鈥淚 cannot give up. I have put everything I have in here,鈥 Vang said. 鈥淚 have to hang in there for a couple more years and see if I can make it work.鈥

That has meant sacrifices. Vang has stopped shopping online for new clothes and jewelry, sending money overseas and buying pricier groceries, such as seafood. She gave away three of her nine dogs and only takes her family out to dinner on rare occasions.

Like many of her neighbors, Vang now supplements her pantry with staples from the food bank, though like many of her neighbors, she is also doing her part to hold the community together, helping to coordinate a new distribution site in Trinity Pines, a mountain settlement of predominantly Hmong farmers. A Facebook group called Hayforkers has become a forum for people looking for assistance or giving away extra food and household items.

鈥淚 am a very tough person,鈥 Vang said. 鈥淚鈥檓 happy that even though my income is not the same, but my family, my health remains the same and the people that I know, the community at large still love each other, still comfort each other.鈥

Packaged noodles are part of the 鈥渃ultural bags鈥 distributed to Hmong community members by the Trinity County Food Bank at the Trinity County Fairgrounds on Feb. 8, 2023.
Martin do Nascimento
/
CalMatters.
Packaged noodles are part of the 鈥渃ultural bags鈥 distributed to Hmong community members by the Trinity County Food Bank at the Trinity County Fairgrounds on Feb. 8, 2023.

Ira Porter is also on a shoestring budget. He covers his $200 per month rent by collecting cans and bottles 鈥 there are fewer than there used to be 鈥 from people who don鈥檛 want to travel all the way to the county seat of Weaverville or Redding to turn them in.

Porter, 59, used to do maintenance and repair work on cannabis farms, fixing cars, water systems, and trimming machines. His wife was a trimmer.

鈥淚鈥檇 be busy all year round, you know, because there鈥檚 always something to do,鈥 Porter said through the window of his white Volkswagen sedan as he waited at the Hayfork food distribution with his pug Biggee in his lap. 鈥淚 don鈥檛 know how many of these farmers left, but I鈥檓 not getting any calls this year as far as to do that.鈥

Ira Porter and his dog Biggee wait in line to receive food at the Trinity County Food Bank distribution at the Trinity County Fairgrounds on Feb. 8, 2023.
Martin do Nascimento
/
CalMatters
Ira Porter and his dog Biggee wait in line to receive food at the Trinity County Food Bank distribution at the Trinity County Fairgrounds on Feb. 8, 2023.

As the line of cars slowly worked its way through the parking lot of the Trinity County Fairgrounds, past the volunteers handing out boxes of vegetables and bags of noodles, Porter cataloged the things he loves about Hayfork: The open spaces. The fresh air. Hanging out at the creek looking for gold. Being able to leave the keys in his car at night and not having to lock the door to his house. Chopping wood for kindling in the winter.

鈥淚 moved up here to get out of L.A. because it鈥檚 a zoo down there, and there鈥檚 just too many people, and they鈥檙e all pissed off because they don鈥檛 got no elbow room,鈥 Porter said. 鈥淯p here, it鈥檚 just beautiful. I love this place, you know? I mean, cannabis industry or not, I want to live here and die here.鈥

 is a nonprofit, nonpartisan media venture explaining California policies and politics.