Worried about compost used by organic farmers

I saw a news blurb on TV that disturbed me. It was a story about recycling in the San Fransisco area and how it is not profitable and the city wants to cut it down or out completely...recycling is problematic from much of what I've read.

Anyway, they cut to a shot of an organic farmer who was holding a handful of compost made from discarded foods from the area and he was talking about what great compost it made. Correct me if I am mistaken but I doubt the majority of folks living in the Bay area consume organic produce, which makes me question the richness of this kind of compost...laden with pesticides and chemicals as most produce is.

I certainly support organic farming, but was rather shocked by this story. Is there something I'm missing here? Is there a stage at which chemicals and pesticides break down before they become compost for the very expensive organic produce that I am now buying...most of which comes from California?

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