The History of Industrial Hemp: From America's Founding to Michigan's Future

The Colonial Era and Early American Trade (1600s-1700s)

Hemp was never merely a crop in early America—it was the backbone of empire. When English settlers arrived in North America, hemp became as essential to the founding of our nation as the Constitution itself.

The Virginia Company recognized hemp's strategic value immediately. In 1619, just twelve years after Jamestown's founding, colonial legislatures mandated hemp cultivation. By the 1700s, American hemp was being exported directly to France and Russia—our founding nation's earliest trade partners—proving that hemp was integral to international commerce from America's very beginning.

Why the urgency? Simple: rope, canvas, and sailcloth. Without hemp-derived cordage and textiles, European powers couldn't build the naval fleets that controlled global trade. America's farmers became essential suppliers to France's maritime expansion and Russia's growing naval ambitions. This wasn't sentiment; this was geopolitics. Hemp was liquid power.

Thomas Jefferson, Benjamin Franklin, and George Washington all cultivated hemp on their estates. Not for fiber alone—they understood the crop's economic multiplier effect. Hemp wasn't just agriculture; it was economic infrastructure. The fiber industry, the seed oil production, the animal bedding, the food uses—all generated wealth that funded America's independence.

Industrial Revolution and American Ascendancy (1800s)

As America emerged from revolution, hemp remained our most important agricultural export. Entire port economies in Boston, New York, and Charleston depended on hemp shipments. Mills and processing facilities sprouted across the Northeast, transforming raw stalks into finished goods that competed globally.

But progress came with a price. The invention of the cotton gin in 1793 shifted the textile industry's center of gravity. Cotton, easier to process through mechanization, began its inexorable rise. Yet hemp held ground. American hemp farmers, backed by decades of international trade relationships with Europe and Russia, continued to thrive throughout the 1800s.

Then came a technological breakthrough that should have cemented hemp's industrial future forever.

The Forgotten Billion-Dollar Moment (1930s)

In 1930, DuPont patented synthetic fibers, forever changing the trajectory of American industry. But something remarkable happened first: in **1938, Popular Science published a prophetic article predicting that industrial hemp would become a billion-dollar industry.

They were right. On paper.

The machinery existed. The markets were ready. American hemp could have dominated the 20th century. Instead, what happened next would define the next 80 years of hemp's American story: prohibition.

The Suppression: The Marijuana Tax Act of 1937

In September 1937, the federal government banned hemp production with the Marijuana Tax Act—legislation fueled by competing interests (timber barons, petroleum companies, synthetic fiber manufacturers) who saw hemp as an existential threat to their profits.

Canada followed suit in August 1938, eliminating North America as a hemp-producing region overnight.

Hemp didn't disappear from the American imagination, though. It went underground—into memory, into history, into the dreams of farmers and entrepreneurs who remembered what this crop could do.

The War Years: Hemp For Victory (1942-1945)

Then came Pearl Harbor. The Japanese invasion of the Philippines cut off American hemp imports—devastating an economy dependent on imported cordage and canvas.

The U.S. government, facing an existential crisis, did the unthinkable: they lifted the ban.

The USDA launched the "Hemp For Victory" campaign, a propaganda effort to convince American farmers to plant hemp for the war effort. Over 150,000 acres were cultivated. Hemp fiber, hemp seed oil, hemp cordage—all went to support American soldiers and the war machine.

It worked. American farmers proved they could grow it at scale. The machinery worked. The supply chains functioned. Hemp was, once again, patriotic.

But the moment the war ended, so did the program. Hemp was illegal again. For 73 years.

The Prohibition Era: From Tax Act to Schedule I (1937-2018)

The government's reasoning was simple: ban the plant, solve the problem.

In 1969, the Marijuana Tax Act was ruled unconstitutional in Leary v. United States. Congress responded by passing the Controlled Substances Act, placing Cannabis—hemp included—as a Schedule I controlled substance, equal to heroin in the eyes of federal law.

This classification would haunt American agriculture for half a century. Hemp couldn't be grown. It couldn't be researched. It couldn't be developed. The billion-dollar crop became a felony to cultivate.

American farmers watched from the sidelines as Canada, Europe, and China developed industrial hemp sectors. The global market grew. Innovations in processing, breeding, and applications multiplied. America missed it all.

The Resurrection: The 2018 Farm Bill

On December 20, 2018, everything changed.

The Agricultural Improvement Act of 2018 (H.R. 2), introduced by Rep. Conaway, legalized industrial hemp cultivation at the federal level. For the first time in 81 years, American farmers could legally grow hemp.

The bill's passage represented a stunning bipartisan victory—a recognition that hemp wasn't a drug threat, but an economic opportunity. The provision redefined hemp as any cannabis plant containing less than 0.3% Total THC by dry weight, creating a legal distinction between industrial hemp and intoxicating cannabis.

Michigan Responds: The Birth of iHemp Michigan (2018-2019)

Michigan moved fast.

The Michigan Department of Agriculture and Rural Development (MDARD) quickly established a Research Pilot Program for Industrial Hemp. Following the federal framework, Michigan passed three critical bills to regulate hemp production:

• Michigan House Bill 6330: Established the regulatory framework for hemp growers
• Michigan House Bill 6331: Defined processor and handler licensing requirements
• Michigan House Bill 6338: Created the testing and compliance protocols

By 2019, the response was explosive. Over 600 growers were licensed. Over 200 processor/handler licenses were issued. Hemp was planted in 58 counties across Michigan.

In January 2019, iHemp Michigan was founded as a trade association to unite farmers, processors, manufacturers, and entrepreneurs around a shared vision:

"Growing the future from seeds of the past."

On Earth Day 2019, iHemp Michigan helped 52 new members get their growers' licenses. The enthusiasm was palpable. The industry was being reborn.

Education and Advocacy: Building the Movement (2019-2021)

From the beginning, iHemp Michigan understood that education was the foundation of industry development. What distinguished iHemp Michigan from other trade groups wasn't just membership—it was commitment to hands-on learning and community engagement.

iHemp Michigan launched an aggressive education agenda:

• Hemponomics 101 & 102: Comprehensive courses teaching cultivation best practices, processing economics, regulatory compliance, and business fundamentals to hundreds of aspiring growers and entrepreneurs
• Dozens of hands-on workshops: Covering topics from soil health and photoperiod management to harvesting, drying, and cure techniques—delivered directly to farming communities across Michigan
• Field days: Interactive events where growers could see successful cultivation practices in real time, test equipment, and network with industry peers
• Three flagship expos: Including the Midwest iHemp Expo, which drew over 1,200 participants in 2020, establishing Michigan as a regional hub for hemp education and commerce
• The iHemp Hour: A weekly online series that produced over 110 episodes of expert interviews, policy updates, cultivation tips, and industry analysis—reaching thousands of farmers, entrepreneurs, and advocates nationwide

This commitment to education paid dividends. Farmers who attended workshops understood crop timing, testing windows, and compliance protocols. Processors learned quality control. Retailers understood product safety and labeling requirements. The entire ecosystem benefited from shared knowledge.

Yet the first harvest season also brought hard lessons.

The Growing Pains and the Regulatory Shift (2019-2021)

Crops went "hot"—exceeding the 0.3% Total THC limit. Inventory was stolen. Growers lacked processing plans and infrastructure. Yet the value was undeniable: a liter of CBD distillate commanded $4,000 at harvest time.

The gold rush mentality swept Michigan. By 2020, licensing numbers grew, but so did problems. Growers following bad advice faced compliance issues. Oversupply from 2019 grows put devastating pressure on CBD pricing. Many pivoted to growing CBG genetics, chasing the next trend.

But an even more troubling trend was emerging—one that would create a schism in the industry and undermine the legitimacy of regulated hemp production.

The Delta-8 Problem: Unregulated Intoxicants Threaten Regulated Hemp

Here's what happened: CBD oil, when prices collapsed, became cheap and abundant. Entrepreneurs discovered that through chemical conversion processes, they could transform legal CBD into delta-8 THC—an intoxicating cannabinoid that existed in a legal gray zone.

The federal government's definition of hemp focused on "delta-9 THC"—the primary intoxicating compound in marijuana. Delta-8 wasn't explicitly banned. The DEA didn't regulate it. So suddenly, producers could take excess hemp biomass, extract and concentrate the CBD, run it through a conversion process, and create delta-8 products that produced a marijuana-like high.

The problem was catastrophic for the regulated industry.

Delta-8 products flooded convenience stores, gas stations, and online retailers—largely unregulated, with minimal quality control, inconsistent labeling, and no third-party testing standards. Some products were labeled as "hemp-derived" but were indistinguishable from intoxicating cannabis to consumers (and to law enforcement).

Worse: delta-8 could be shipped across state lines, skirting strict state cannabis regulations. A producer in Michigan could convert CBD oil into delta-8 and ship it to 47 other states where cannabis was illegal. This created a massive arbitrage opportunity that undermined:

• State cannabis regulatory frameworks: Regulated, licensed adult-use cannabis businesses in Michigan couldn't compete with unregulated delta-8 products shipped in from other states
• Hemp industry legitimacy: Policymakers began conflating hemp with marijuana, seeing both as drug production vehicles rather than agricultural commodities
• Consumer safety: Delta-8 products lacked the rigorous testing, dosing controls, and labeling standards that regulated cannabis products required
• Banking and investment: The convergence of hemp, delta-8, and cannabis created regulatory confusion that kept serious institutional capital away

iHemp Michigan and our partners in the regulated cannabis industry recognized the threat immediately. We testified at hearings opposing delta-8 without proper regulation. We advocated for state legislation requiring conversion of CBD to intoxicating cannabinoids to be subject to CRA approval with supporting peer-reviewed studies. We called for federal clarity.

Michigan withdrew a proposal to require hemp-derived THC products to be sold in licensed adult-use stores—acknowledging the complexity—but the issue remains unresolved. The wild west of delta-8 production continues to threaten both the hemp and cannabis industries.

This is why industry standards, third-party testing, and regulatory alignment matter. iHemp Michigan's advocacy for the US Hemp Authority certification (3.0 standard) isn't bureaucratic red tape—it's a defense mechanism against bad actors who undermine the entire ecosystem.

The Consolidation: Cannabis Regulatory Agency (2022-Present)

In 2022, Governor Gretchen Whitmer signed an executive order that transferred regulation of industrial hemp from MDARD to the Michigan Cannabis Regulatory Agency (CRA). The agency was renamed to reflect this expanded mandate.

The regulatory landscape shifted again. Hemp, once its own distinct category, was now entangled with recreational and medical cannabis regulation. Fewer growers could afford the rising costs and complexity—less than 100 purchased licenses in 2022.

Yet demand was growing. Buyers searching for stable supplies of biomass to fill the CBD retail market began reaching out. The oversupply crisis of 2019 had given way to supply scarcity.

The Current Moment: Moving Hemp Back to the USDA (2023-2026)

Today, iHemp Michigan faces a crucial crossroads—one that demands our advocacy and your membership.

Industrial hemp has the same banking and investment challenges as marijuana—but it shouldn't. Investment capital is pouring into the recreational market, where sales are booming but prices are collapsing. Processing infrastructure—the mills, the decorticators, the extraction facilities Michigan needs—remains underfunded and underdeveloped.

The delta-8 situation has made things worse. Regulators are now hesitant to clarify CBD rules because they fear it will enable more conversion into intoxicating cannabinoids. This regulatory paralysis is suffocating the CBD market, which should be a stable, commodity-like business.

But here's what's emerging as the strategic imperative: returning hemp regulation to the USDA, where it belongs.

Why? Because hemp isn't marijuana. It's agriculture. Hemp fiber, hemp grain, and hemp hurds are commodities with global markets, industrial applications, and profit potential that rival corn and soybeans. These end-uses should be governed by agricultural policy, not cannabis policy. And CBD, when properly regulated as a dietary supplement or pharmaceutical ingredient, should follow FDA pathways—not be lumped in with recreational cannabis.

Several critical pieces of federal legislation are now in development or being championed by iHemp Michigan and our allies at the U.S. Hemp Roundtable:

• The Hemp Access and Consumer Safety Act: Calls for FDA regulation of CBD as a dietary supplement, removing the legal gray zone that has paralyzed investment in this sector and enabled the delta-8 loophole
• The SAFE Banking Act: Would allow hemp and cannabis businesses access to traditional banking, solving one of the industry's most crippling challenges
• Proposed Farm Bill language (2024-2025 cycle): Seeks to raise the Total THC threshold to 1% for grain and fiber crops, aligning U.S. regulations with Canada's more competitive standard and preventing "crop loss" from crops that test slightly above 0.3% THC

These bills represent more than regulatory tweaks. They represent a philosophical shift: recognizing industrial hemp as an agricultural commodity, not a drug threat—and establishing clear boundaries around intoxicating cannabinoids like delta-8 so they can be properly regulated separately.

The path forward requires strategic advocacy. iHemp Michigan is actively engaged in Lansing and Washington, testifying at public hearings, championing fair regulations, and building coalitions with Farm Bureau, agricultural extension services, regulated cannabis businesses, and other agricultural stakeholders.

This is where you come in.

Why This Matters: The Economic Imperative

Consider the facts:

• Canada's hemp industry operates under agricultural regulatory frameworks with no licensing fees for grain and fiber production, pedigree THC testing, and a 10 ppm THC threshold in final grain products—making it dramatically more competitive than Michigan
• Global hemp fiber and grain markets are growing at double-digit rates annually
• Michigan's climate and soil are ideally suited to hemp production
• The processing gaps are real, but solvable—with investment, policy clarity, and the right regulatory environment
• The delta-8 crisis demonstrates what happens when markets are left unregulated—bad actors exploit loopholes, regulators lose confidence, and legitimate businesses suffer

The vision is clear: grain and hemp fiber will become major commodities for Michigan farmers, delivering stable, sustainable profits that rival or exceed traditional row crops. Hemp building materials are being used to construct homes worldwide—including in Michigan. Hemp seed oil, hemp hurds, and hemp-based textiles are moving from niche to mainstream.

But this future requires advocacy, membership, and collective action. It also requires that we draw bright lines between industrial hemp (agricultural commodity) and intoxicating cannabinoids (regulated substances), so that bad actors can't weaponize regulatory ambiguity.

Join iHemp Michigan: Growing the Future

The history of industrial hemp in America is a history of missed opportunities and false starts. We had the markets. We had the technology. We had the buyers. But we lacked the political will and policy clarity. That's changing. But it requires your voice, your vote, and your membership.

iHemp Michigan is a 501(c)(6) trade association dedicated to educating, informing, and promoting the development of industrial hemp in Michigan. Our members include farmers, processors, manufacturers, retailers, and entrepreneurs united by a shared belief: hemp can transform Michigan's economy and environment.

Our advocacy and education efforts have already made an impact:

• We've testified at CRA public hearings, championing fair hemp regulations and opposing unregulated delta-8 conversion
• We've engaged with the U.S. Hemp Roundtable on federal policy initiatives, including FDA CBD regulation and the SAFE Banking Act
• We've hosted over 110 episodes of the iHemp Hour, a weekly educational series featuring industry leaders, researchers, and policy advocates
• We've organized three flagship expos, including the Midwest iHemp Expo, drawing over 1,200 participants and establishing Michigan as a regional hemp hub
• We've delivered dozens of Hemponomics workshops teaching cultivation, processing, compliance, and business fundamentals
• We've hosted dozens of hands-on workshops and field days, bringing growers together to share best practices and see real-world cultivation success
• We've educated hundreds of farmers and entrepreneurs through direct engagement, building a community of informed advocates

But we're just getting started.

Join iHemp Michigan today. Your membership directly funds our advocacy efforts in Lansing and Washington. It connects you with fellow farmers, processors, and entrepreneurs building Michigan's hemp future. It gives you access to exclusive content, networking events, and industry intelligence.

Membership is easy: Visit iHempMichigan.com and join today.

The future of industrial hemp in Michigan won't be written by chance or by competitors in Canada and Europe. It will be written by farmers and entrepreneurs who believed enough to join the movement—and who are committed to building a legitimate, regulated, thriving industry where bad actors and regulatory confusion don't destroy opportunity.

That future starts with you.