Indicted Farmer Changes Plea to Guilty

Minnesota Farmer Indicted on Organic Crops Conspiracy Pleads Guilty to Wire Fraud

Todd Neeley
By  Todd Neeley , DTN Staff Reporter
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A Minnesota farmer pleaded guilty to one count of wire fraud in an organic crops case. (DTN file photo)

LINCOLN, Neb. (DTN) -- Cottonwood County, Minnesota, farmer James Clayton Wolf pleaded guilty Friday to one count of wire fraud in connection with an alleged organic crops conspiracy, following a change-of-plea hearing in a federal court.

Under federal law, wire fraud is a Class C felony punishable by up to 20 years in prison, three years of supervised release and $250,000 in fines.

Wolf asked the U.S. District Court for the District of Minnesota to complete a presentencing report and conduct an investigation ahead of sentencing.

The court recently rejected Wolf's request to have farm equipment seized from his farm as part of the investigation returned to allow him to plant this spring.

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Wolf was indicted by a grand jury last year on three counts of wire fraud as a result of an alleged conspiracy to falsely sell $46 million in non-GMO corn and soybeans as organic. Twelve pieces of Wolf's farm implements were seized by federal authorities as part of the investigation.

Also indicted on Jan. 11, 2023, was Olson Seed LLC owner and operator Adam Clifford Olson of Windom, Minnesota. Olson now is named along with Wolf in the new indictment. A superseding indictment replaces a previous indictment.

The court allowed Wolf to use his equipment to harvest in 2022 but warned him at the time he would not be able to have it back for farming this year.

The indictment alleges Wolf grew conventionally farmed crops using chemical fertilizers and pesticides, which would be in violation of organic-farming standards. Olson was added to the indictment for his alleged role in the scheme.

For years, Wolf provided grain purchasers with copies of his National Organics Program certification, but according to the indictment, he withheld information the grains were not organically farmed. The scheme resulted in Wolf allegedly receiving more than $46 million in payments from grain buyers.

The indictment alleged Wolf directed some grain payments to a third party who then "spent the money for Wolf's benefit." His organic-farming certification was revoked in 2020. The indictment, however, alleges Wolf "utilized an associate" to continue the scheme by selling non-GMO crops as organic.

Wolf and other associates communicated with a grain supplier and with buyers via email and telephone, including sending documents "falsely describing" the grain as organically grown.

Organic crops are grown without the use of GMOs or chemicals, and farmers are required to follow strict protocols when it comes to planting, fertilizing, harvesting, storage and transportation of the crops labeled as organic.

Read more on DTN:

"Court Denies Farmer Equipment Return," https://www.dtnpf.com/…

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Todd Neeley

Todd Neeley
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