Embattled organic sector worries about regulation

The U.S. food supply system has been battered by a series of food recalls -- covering a range of products including lettuce, spinach, peanuts and most recently, cookie dough -- since 2006 that have eroded consumer confidence.

Under the new legislation, the industry would have to pay a $500 registration fee per facility to pay for more plant inspections. Farms, restaurants and retail food establishments that sell their products directly to consumers, not businesses, are exempt from this fee. There would be a $175,000 cap on such fees.

Organic farmers still say the definition of a facility is unclear in the legislation and they worry about additional costs that might be incurred on small businesses. Inspections will be more frequent, taking place every six to 12 months at high-risk facilities and between 18 months and three years for lower-risk locations.

As part of a broader food safety overhaul, the Obama administration recently announced the creation of a new post of deputy commissioner for foods at the U.S. Food and Drug Administration. The position would oversee all food safety activities within the agency.

Most organic farmers believe food safety reforms are necessary, but they worry small and medium organic farmers will be unfairly targeted.

"Based on the escalating cost that would be involved in conforming to this legislation -- administrative fees, record keeping and internal labor requirements -- we can force out of business some of the highest quality practitioners," said Mark Kastel, an analyst at the Cornucopia Institute in Wisconsin.

Kastel said organic farmers are tempering their enthusiasm for food safety reform with some skepticism.

"The same players who helped create the problems that exist today are enthusiastically embracing what they say is the answer," he said.

"It's unsettling when grocery associations and major processed food producers get together and agree with the government that they're going to do this without any regard to the high quality organic practitioners."