The late economist and Nobel Laureate Milton Friedman used to say that only in government, when a program or project fails dismally, the instinctive response is to make it bigger. This is especially the case in a modern Administrative State like the one we have in America today where a program alleged to serve the well-being of the public is most often proven to serve, in a big way, the interests of a large client of that administrative state.
We’re seeing Friedman’s observation validated yet again in the congressional response to an exposé of the pervasive dishonesty in the organic agriculture industry.
Following a scathing report by the U.S. Department of Agriculture’s inspector general that details fraud, mismanagement, and negligence throughout the global organic agriculture/food supply chain, Congress wants to throw yet more money at the problem.
Last month, Reps. John Faso (R-New York) and Michelle Lujan Grisham (D-New Mexico) introduced the “Organic Farmer and Consumer Protection Act.” It would nearly triple the budget of the USDA’s National Organic Program, which oversees the country’s organic standards and commerce. Faso said in a news release that the legislation will “provide for a modernization of organic import documentation, new technology advancements and stricter enforcement of organic products entering the US.”
The organic industry is cheering Faso’s bill; the Organic Trade Association says it “would make significant strides to improve the oversight of global organic trade, create a level playing field for American organic farmers, and establish a better system to ensure the integrity of organic.” Integrity of organic? Rubbish; it would only create a bigger fig-leaf.
When the organic designation was established in 1990, then-Secretary of Agriculture Dan Glickman emphasized its fundamental meaninglessness: “Let me be clear about one thing, the organic label is a marketing tool. It is not a statement about food safety. Nor is ‘organic’ a value judgment about nutrition or quality.” The Faso-Grisham legislation is yet another special interest bonanza designed to further subsidize domestic organic farmers and enrich the bottom line of already hugely-profitable organic businesses.
Republicans in Congress and the Trump administration should oppose the legislation and, beyond that, demand explanations of the multiple violations revealed in the recent USDA inspector general’s report. After a year-long investigation, the Inspector General found serious breaches in the international organic market that may result in “reduced U.S. consumer confidence in the integrity of organic products imported into the United States.” Federal authorities failed to verify whether imports were organic, did not perform mandatory on-site visits of exporting countries and ignored requirements to resolve the different organic standards among exporters. Moreover, imported agricultural products, whether organic or conventional, are sometimes fumigated at U.S. ports of entry to prevent alien pests from entering the United States. USDA investigators found pesticides that are prohibited under organic protocols were being sprayed on organic shipments.
At every point in the supply chain, National Organic Program officials have been negligent, allowing the participants in this booming sector to mislead consumers into believing organic food is healthier, safer and more eco-friendly than non-organic food—none of which would be true even if there were strict adherence to organic standards.
The misrepresentation and chicanery in the supply chain aren’t new, and the feds have long been aware of that. For example, USDA reported in 2012 that 43 percent of the 571 samples of “organic” produce tested were in violation of the government’s organic regulations, and that “the findings suggest that some of the samples in violation were mislabeled conventional products, while others were organic products that hadn’t been adequately protected from prohibited pesticides.”