Yeah "organic" seems like the same thing as saying something is "green". I mean, you could make up pretty much any bullshit about something and call it green.
There is a certification program for calling something organic. You can't do what you described (legally).
http://www.usda.gov/wps/portal/usda/usdahome?navid=ORGANIC_CERTIFICATIO
And there are some fruits and vegetables where organic is a positive, and others where it's not. Like, for apples, organic is better. Oranges not so much.
I am by far not an expert, but the NPR interview wasn't just with some hick that sold cabbage at the local farmer's market. It was some guy in the industry that said it is a valid and allowable practice. I don't remember exactly when the interview was, or I would find it on their website. He essentially said that the given regs leave a lot of room to wiggle into something that isn't what you or I think it would be when buying something labeled as organic.
Yeah, but you can't legally just call something "organic" like you can "green". A better comparison than "green" would be "LEED certified". Yeah, there are some workarounds that may not all clearly be the best thing for the environment to make a building LEED certified, but you can't just call it LEED certified.
Also, I know lots of farmers that hate organic because they act like people will make them grow organic crops, which is pretty LOL. I really don't get the hate. If people want to pay a premium for organic food and farmers are willing to produce it, let them.
Also pretty LOL for farmers to claim to worry about feeding the world, when our ridiculous ag subsidies and policies completely undercut the ability of much of the third world to compete in the market and feed themselves.