Yup. Completely ridiculous. I actually have sitting in my refridgerator a big ass sack of hemp seeds, for eating. You can buy them at the store. Thing is every single seed is sliced in half, so there's no way it could grow. Ridiculous but yeah it's true. You can buy hemp seeds to eat it's just that they're grown in another country (namely Canada) and they're always cut in half so they can't be grown.
Hemp clothes, hemp paper, hemp oil (which I also have in the fridge and purchased legally) are all acceptable. Just the US farmers aren't allowed to grow it, so we miss out on that part of the economy