Jordan, Minn. ? The cows on Pam and Jeff Riesgraf’s farm chomped happily away on lush green grass on a warm, sunny afternoon. Their milk would soon find its way to grocery stores, where organic dairy products are a hot item.

The Riesgraf farm represents one vision for organic dairy – small- and medium-sized family farms where the cows have names and spend the growing season on pasture.

A different kind of organic dairy farm is emerging out west – corporate-owned feedlot operations with thousands of cows that are fed organic grain but, according to critics, get little chance to graze.

Fears that big operations will muscle out family farms have produced a backlash, including a boycott by the Organic Consumers Association against the country’s biggest organic milk brand, Horizon Organic.

Organic farmers and consumer groups are hoping the U.S. Department of Agriculture will level the field. The agency is considering whether to mandate that milk bearing the “USDA Organic” seal come from cows that have significant access to pasture, a move smaller producers say would give them the protection they need.

Chris Hoffman drank Horizon milk until she learned about the dispute and switched brands. The Sherburne, N.Y., woman said she’d thought she was buying milk from “family farms with happy cows.” To her, feedlot milk does not follow the spirit of organic farming.

A cow heads to a milking station last month at Cedar Summit Farm near New Prague, Minn., as milker Scott Lambert, left, follows. The farm milks about 160 cows in its organic milk business.

“I just think it’s patently dishonest. And it just really ticked me off,” she said.

Horizon, part of Fort Worth, Tex.-based Dean Foods Co., sells about half of the organic milk in this country, through retailers including Wal-Mart Stores Inc. Its president and CEO, Joe Scalzo, said Horizon is a strong supporter of family farms, helping hundreds make the transition to organic. Horizon is just trying to meet the “exponential” growth in a market where demand outstrips supply by some 20 percent, he said.

However, Mark Kastel, senior farm policy analyst with the research group Cornucopia Institute, countered, “There’s been a near consensus in the organic community that these factory farms are repugnant to the consumer and put organic farms at a disadvantage.”

Kastel said organic milk consumers are willing to pay more because they believe it’s produced to higher ethical standards that benefit the environment, the animals and family farmers.

“They don’t think they’re supporting rich corporate investors who think organics is a great way to cash in,” he said.