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Fraud Plus Weak Oversight from the USDA Hurts Organic Food Brands

By August 11, 2022No Comments

The organic food movement has become more prevalent over the years, and there are no signs its expansion will slow. But more organic food means the US Department of Agriculture (USDA) must become more efficient in their oversight of the organic industry. But what happens when the USDA fails?

 

One South Dakota farmer accrued $71 million of fraudulent income by falsely labelling his conventional grain as organic. He used the money to buy an $8 million yacht, among other extravagant items. Meanwhile, a Minnesota farmer made $46 million buying conventional grain and reselling it as organic. Until they were caught, both farmers profited off of the higher price of organic foods. But it took six years to catch the Minnesota farmer, and it is unclear how much time passed before the SD farmer was prosecuted.  

 

The organic food industry is asking the USDA for tighter regulations and more inspections. These changes would protect organic growers and their brands, reflecting standards that require more work and result in healthier food. Read about these standards at this link