Exactly, beef producers are inclined to produce extremely low-cost and low-quality beef when there isn't an incentive to reach a healthy middle ground.
While small-scale farmers can foster a healthy personal relationship with their customers by producing quality product, even without necessarily meeting the strict organic or grass-fed standards, industrial-scale farms have almost no incentive to raise production costs, because it only directly interfaces with packagers and inspection agencies. For example, if you want to buy kosher food at the supermarket, you only need to look for food that bears the mark of a hechsher, such as OK or OU.
I am definitely saying that the entire concept of organic food is somewhat pernicious because it's not actually about sustainability and health so much as arbitrary ideals of "natural" purity. But more importantly, I'm also saying that its steep requirements works against producers who would be happy to meet in the middle, if only there was a meaningful incentive. The current standards systemically harm the overall quality of food by demanding all-or-nothing commitment.
If there were an evidence-based standard that rewards farmers for balancing health, sustainability, and efficiency, and allowed mediocre-quality product to stand above low-quality product while still incentivizing improvement, that would be miles more useful than a label for following the organic belief diet.