You really think that small farmers are responsible for the enactment of USDA inspection requirements? Historically, they fought them tooth and nail which is how they got some exemptions. Big Ag caved since it didn't affect their viability and their liability was much greater.In a word- yes. If not directly, through surrogates of all kinds. Who was behind the regulations in the first place?
In the end, it does not matter though, what they got was less regulation while their competition was more heavily regulated with the attendant costs.
Maybe this was a "good" thing- whatever that means, but to act like applying the same standards is somehow immoral in some way....
The economic manipulation in the name of "safety" here is pretty much a one way street which is what many find offensive.