I will quote directly from this excellent factual article on the history of hemp in America:
The American colonists relied heavily on hemp. At that time, hemp was the world’s leading crop. A law enacted in Virginia in 1619 made hemp production mandatory for all farmers. Similar laws were passed in Massachusetts in 1631, in Connecticut in 1632 and the Chesapeake Colonies in the mid 1700s. George Washington and Thomas Jefferson both farmed hemp. “Make the most you can of the hemp seed and grow it everywhere,” wrote George Washington in 1794. The first drafts of the Declaration of Independence were written on hemp paper and all early American flags were made with hemp. …
So why is hemp not grown in America today? Why has the American creative genius not found ways to process hemp efficiently and turn it into a myriad of useful products, at least on a large scale?
The reason is twofold: Hemp competes directly with wood products and hemp belongs to the same plant family as marijuana. The history of how hemp products were removed from the American commercial scene deserves retelling, but only after this important disclaimer: This article is not intended to endorse the legalization of marijuana or the recreational use of this drug in any way. …
While I personally think that the criminalization of hemp is ridiculous alongside the legal use of alcohol, this is not a song about Alice. My position on hemp is that it could be a key crop for sustainability, from the useful fibers to the oil-rich seeds. There are low-THC strains out there, but growing hemp in this country is very hard to do because of the fanaticism of the anti-drug folks. I’ve read pieces of the story in other places, but this Weston Price article lays it out and links several of the pieces together in ways I’ve not seen before, such as the Dupont/Hearst deal.
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