The Post did an investigation of a big "organic" dairy a while back. I put in the quotes because the article raised questions about whether it met the requirements for being organic, especially whether the cows were grazing or not. Here's a piece questioning whether USDA's subsequent investigation which found no big problems were sufficiently thorough (apparently the dairy was warned before the investigators showed up).
This would be a good episode for some academic to write on, because it involves several issues: efficiency from scaling up, the tradeoffs of grazing versus grain (and the simple logistics of grazing), the bureaucracy of writing and enforcing regulations, capture of bureaucracy by interest groups, strategies of interest groups of various kinds (the "organics" wage a media war, the industry wage a guerilla war of lobbyists).
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