Settlement Agreements

The NOP often enters into settlement agreements with operations, certified and uncertified, and accredited certifiers concerning noncompliance with the USDA organic regulations.  Typically, these settlements are executed as alternatives to administrative proceedings that may result in suspension or revocation of certification or accreditation, as well as civil penalties for the knowing sale of products in violation of the USDA organic regulations.  Settlement always requires operations to comply with USDA organic regulations and, sometimes, includes specific compliance requirements and/or reduced civil penalties.

2023 | 2022 | 2021 | 2020 | 2019 | 2018 |2017 | 2015-2016

Current Year

03/01/2024: Kip Haadem (Haadem) – Tappen, North Dakota

KIP Haadem (Haadem) withdraws its appeal, waives further appeal rights in this matter and agrees that entering into this agreement is not a guarantee of organic certification. Haadem agrees that it is seeking reinstatement of its organic certification through a certifier of its choice; agrees to submit all required documentation including Prior Land Use Affidavits and other field history documentation; agrees that if the chosen certifier recommends reinstatement, the NOP Accreditation Division will accelerate the process of review and determination of reinstatement; and agrees that if granted certification it must submit its renewal certification application to its certifier for the next two years, including an updated organic System Plan and certification fees, and agrees to provide on-time responses to all certifier requests for information, documentation and other recordkeeping. If Haadem chooses not to renew its organic certification, it agrees to notify the certifier of its decision to surrender its organic certification.

02/28/2024: Hart Farms (Hart) – Americus, Georgia

Hart Farms (Hart) withdraws its appeal, waives further appeal rights in this matter, and agrees to provide on-time responses to all certifier requests for information, documentation and other recordkeeping required to maintain organic certification. Hart agrees that it will not use any inputs on its organic crops unless approved by its certifier and include any inputs used on its Organic System Plan; agrees to maintain adequate buffers around all organic crops and take all necessary measures to prevent contamination of organic crops from prohibited substances. Hart agrees to maintain records on all pest control materials and receive approval from its certifier prior to use, agrees to conduct and document commercial seed searches for organically grown seeds; and agrees to only use seeds, seedlings, and planting stock approved by its certifier. Hart agrees to maintain current organic certificates for all suppliers and agrees to two unannounced inspections within two years of this settlement agreement, at its own expense.

02/27/2024: Six Diamonds Ranch LLC – Golden, Colorado

Six Diamonds Ranch LLC agrees to pay a civil penalty of $15,195 and will not represent itself as a USDA certified organic operation unless and until it becomes certified organic. Six Diamonds Ranch LLC will not sell, label, or represent products as organic without organic certification.

02/23/2024: Carillo Quezada J. Jesus (Jesus) – Uruapan Michoacan, Mexico

Carillo Quezada J. Jesus (Jesus) withdraws its appeal, waives further appeal rights in this matter, and agrees to provide on-time responses to all certifier requests for information, documentation and other recordkeeping required to maintain organic certification; agrees to get approval from its certifier before using any inputs, and document the use of all inputs in its Organic System Plan, including when, where, and amount applied. Jesus agrees that no prohibited substances are to be used on any organic crops and appropriate measures will be taken to correct any noncompliance; agrees to monitor all organic land to ensure they have adequate buffer zones, manage plant materials to maintain or improve soil organic matter, and conduct training of all personnel twice a year. Jesus also agrees that it will be subject to two unannounced inspections within two years of this settlement agreement, at its own expense.

2/21/2024: Lancaster Foods, LLC - Jessup, Maryland

Lancaster Foods, LLC, agreed to pay a civil penalty of $175,000 and immediately stop selling, labeling, and representing its handled products as organic without certification.

02/20/2024: Rutkowski Farms, Inc. – Mike Rutkowski – Ubly, Michigan

Rutkowski Farms, Inc. – Mike Rutkowski (Rutkowski-Mike) withdraws its appeal, waives further appeal rights in this matter, and agrees to provide on-time responses to all certifier requests for information, documentation and other recordkeeping required to maintain organic certification. Rutkowski-Mike agrees that its livestock will receive at least 30% of its dry matter intake from grazing on pasture during the grazing season and agrees to provide animals that are temporarily confined with no less than 30% of their dry matter intake from grazing on pasture; agrees to maintain detailed grazing and confinement logs to include documentation of any denial of access to pasture; provide sufficient pasture so no livestock has to compete for space; maintain an accurate Livestock List; and agrees not to use any animal inputs or treat animals with any substance unless it has been approved.

02/16/2024: A&M Farms, Inc. – Lyons, Georgia

A&M Farms, Inc. (A&M) withdraws its appeal, waives further appeal rights in this matter, and agrees to provide on-time responses to all certifier requests for information, documentation and other recordkeeping required to maintain organic certification, and agrees to maintain records that fully disclose all activities and transactions in sufficient detail to be readily understood and auditable and enable its certifier to conduct successful traceability and mass balance exercises. A&M will not use any input in its organic operation unless approved by their certifier; will identify all inputs used on its Organic System Plan and record detailed information of all inputs used. A&M agrees to not plant any seed in its organic fields unless approved by their certifier; to maintain documentation on all seed searches and purchases; and agrees that it will be subject to two unannounced inspections at A&M’s expense within 2 years of the execution of this settlement agreement.

2/5/2024: MIBO Fresh Foods, LLC – Fort Worth Texas

MIBO Fresh Foods, LLC agrees to pay a civil penalty of $55,740; immediately stop selling, labeling, or representing its products as organic without organic certification; and agrees to be prompt in communication with the NOP and any certifying agencies.

2/05/2024: Agricola Savannah S.A. de C.V. – Guasave, Sinaloa, Mexico

Agricola Savannah S.A. de C.V. (Savannah) withdraws its appeal, waives further appeal rights in this matter, and agrees to provide on-time responses to all certifier requests for information, documentation and other recordkeeping required to maintain organic certification. Savannah agrees to maintain records that fully disclose all activities and transactions in sufficient detail to be readily understood and auditable and enable its certifier to conduct successful traceability and mass balance exercises; maintain receipts of all inputs received and distributed from the  warehouse; only utilize the services of organically certified handlers and packers for its organic crops; agrees not to use or apply any prohibited substance to its organic crops; and agrees that if any prohibited substance was used they will report it to their certifier. Savannah agrees to provide training to all personnel on the organic regulations and agrees that within the next two years they will be subject to two unannounced inspections.

2/05/2024: Agricola 76 SAPI de CV – Ciudad, Obregon, Sonora, Mexico

Agricola 76 SAPI de CV (Agricola 76) withdraws its appeal, waives further appeal rights in this matter, and agrees to provide on-time responses to all certifier requests for information, documentation and other recordkeeping required to maintain organic certification. Agricola 76 agrees to maintain records that fully disclose all activities and transactions in sufficient detail to be readily understood and auditable and enable its certifier to conduct successful traceability and mass balance exercises. Agricola 76 agrees not to purchase or obtain crops from any producer or supplier unless they are certified organic; conduct thorough seed searches and only plant seed approved by its certifier; and verify organic certification of suppliers, handlers, packers, and processors. Agricola 76 will cease receiving crops from any supplier, handler, packer, or processor if found not to be certified organic; agrees to only use labels on organic products that have been approved by its certifier; and agrees to pay a civil penalty of $7,000 for engaging in transactions with the uncertified operations in 2023.

01/23/2024: Daniel S. Borntreger (Borntreger) – Fall Creek, Wisconsin

Daniel S. Borntreger (Borntreger) withdraws its appeal, waives further appeal rights in this matter, and agrees to provide on-time responses to all certifier requests for information, documentation and other recordkeeping required to maintain organic certification, including its 2024 and 2025 certification renewal application, updated Organic System Plan, and certification fees. Borntreger agrees that it is now certified organic by Global Organic Alliance, will surrender its certification with Nature’s International Certification Servies (NICS) and agrees to pay NICS all overdue certification-related fees.

01/19/2024: Clear Springs Farming LLC (Clear) – Winter Haven, Florida

Clear Springs Farming LLC (Clear) withdraws its appeal, waives further appeal rights in this matter, and agrees to provide on-time responses to all certifier requests for information, documentation and other recordkeeping required to maintain organic certification. Clear agrees to disclose all activities and transactions in detail to be readily understood and auditable, and

enables its certifier to conduct successful mass balance and traceability exercises. Clear agrees to maintain equipment and cleaning logs, and take measures to ensure equipment is properly cleaned to avoid contamination of its organic crops; to not use inputs containing prohibited substances, and not use inputs unless approved by its certifier. Clear agrees to comply with restrictions on inputs and conduct soil tests as needed; maintain sufficient physical separation of organic and conventional crops through all processes, and label all organic areas of their facility; agrees to not plant any variety of plants or perennial planting stock unless approved by its certifier; agrees to conduct and document thorough commercial searches for each variety of plants or perennial planting stock, and maintain and submit documentation to its certifier. Clear also agrees to provide training to all personnel involved in the organic operation.