Protecting Organic Crop Integrity

Consumer commitment to purchasing certified organic food and products has influenced agricultural market trends for nearly 30 years. Currently, this topic is extremely relevant to local farmers since the most recent Pennsylvania Farm Bill and many regional businesses are committed to bolstering Pennsylvania's status as a leader in organic sales and supporting local farmers to produce organic crops. Organic feed is of particular interest to the state's burgeoning organic poultry industry and organic grain provides higher price premiums to farmers than non-organic versions of the same crops.

Unfortunately, organic grain is also at the center of periodic news reports about fraudulent supplies that do not meet USDA organic certification requirements. For example, in 2020, a complaint was lodged to USDA that an Argentinian grain export company deliberately sold corn and soybeans grown with prohibited fertilizers and herbicides that it represented as organic to U.S. customers, including the largest U.S. producer of organic chickens.

But it is not only foreign marketers who are breaking the rules. In 2019, a farmer from Missouri died by suicide after he was sentenced to federal prison for orchestrating the largest known organic food fraud scheme in U.S. history. Four other farmers also received prison sentences for their participation in the same scheme. Between 2013 and 2021, a Minnesota farmer engaged in a scheme to defraud organic grain purchasers by selling them non-GMO grains falsely represented as organic. The farmer repeatedly purchased non-organic corn and soybeans from a grain seller and resold the grain as an organic product. As a result of his fraud scheme, the farmer received more than $46 million in payments from grain buyers and netted more than $19 million in profits. The farmer pled guilty to wire fraud in court in May 2023 and is awaiting sentencing.

All this blatant deceit may make people question the integrity of organic products and their trust in the certified organic label. So, what does the USDA National Organic Program (NOP) do to ensure trust in their products and retain people's confidence? Maintaining the integrity of USDA organic products throughout the world is central to the NOP's mission and the USDA organic regulations require handlers of organic products to comply with requirements along the entire value chain, from farm to market. They enforce a rigorous system to ensure that organic certifiers, and by extension, farmers and handlers, are appropriately trained and consistently held accountable.

An organic certifier's primary responsibility is to verify that organic farmers and handlers comply with federal standards and an accreditation body (e.g., USDA NOP) guarantees they are conducting thorough and complete inspections, have qualified personnel, and are meeting all aspects of their responsibilities. To simplify the certification process, certifiers first review organic systems plans, then conduct inspections, and finally, issue certificates. Organic systems plans are working contracts between farmers and certifiers, which outline, in exhaustive detail, the practices and procedures to be performed and maintained. These include a description of and receipts for all inputs purchased and used for each crop, yields, sales, and a description of the recordkeeping system. Organic systems plans must also disclose whether products are exported or imported, describe product records, identify the source of imported ingredients, provide proof of verification of that source, and include all labeling information. The required level of recordkeeping within an organic systems plan should not be understated, especially for imports.

During the inspection, certifiers verify effective implementation of the organic system plans to review and audit records, to ensure traceability, and conduct pesticide residue testing. Inspections are conducted and certificates are issued annually. Without them, farmers and handlers are not permitted to display the USDA Certified Organic label, represent their product as organic, or collect the premium price for their products. The certifying agents themselves also follow rigorous and public accreditation requirements and undergo NOP audits twice every five years. Any breach in these regulations can result in penalties of loss of certification, loss of ability to sell organic products, and civil penalties. 

Despite demanding regulations, there is still a risk of fraudulent organic products making their way to the market. These are serious crimes that undermine the legitimacy of honest farmers and handlers. The NOP does not take this lightly and continues to improve the rigor they use to eliminate fraud. For example, in response to a fraudulent shipment of grain from Eastern Europe in 2017, the NOP revoked the organic trader certification and proposed revocations against the traders involved.

Meanwhile, requirements for handlers and certifiers to be diligent and thorough in their audits and reporting of potential fraud are becoming more stringent. To reduce fraud in the organic marketplace, protect integrity in the organic supply chain, and build consumer and industry trust in the USDA organic label, the National Organic Program published the Strengthening Organic Enforcement (SOE) Final Rule in 2023. This rule strengthens oversight of organic producers, handlers, and certifiers and improves USDA’s enforcement mechanisms. The SOE rule is intended to reduce the number of uncertified entities, such as traders, handlers, and retailers in the organic supply chain; requires the use of electronic import certificates for all organic imports; strengthens recordkeeping and supply chain traceability; and increases oversight of accredited certifying agents.

If stricter regulations still do not offer much comfort, the adage "Know your farmer, know your food" comes to mind. The majority of organic farmers, handlers, and processors are committed to providing legitimate, high-quality products. These commitments are often built into farm and organization core mission and value statements and can be found within their business resources and advertisements. If you want to know more about a business, pick up the phone and talk to them. Honest, well-meaning individuals will be willing to talk to you and personal integrity becomes apparent through conversation.

More information about the National Organic Program Regulations and the Organic Integrity Database can be found on the USDA Ag Marketing Service (AMS) website or discussed with a local certifying agency.