There is constant movement and activity on a small scale organic farm, and so if one is picking out undesirable vegetables, or pulling doubles, or trimming and pruning, or whatever else, one can make use of that waste if it is expedient to the operation. Compost takes a lot of extra work, and the waste can go there if it is feasible. Or if the animal pens are nearby, the animals can be fed. Otherwise all of the extra vegetables rot in the field where they are pulled, because no one has time or energy to bring them where they need to go.
Of course what counts as waste depends on what you are looking at, what you want, what you don't want to lose, what harms you, and all sorts of other variables as well.
Available energy changes in accordance with outside pressures as well. If consumers in the general market desire their vegetables in a certain form, shape, size, or what have you - whether through rival competition or changing cultural sensibilities - then extra time and energy must be put in to meeting that target, and more waste is generated as the range of acceptable products put out is narrowed.
To further explain, who's responsibility is it to wash the vegetables? How many resources are put into mass washing, or washing on a smaller scale? And if no one wants kale leaves that are bitten up by flea beetles - even if the leaves are perfectly safe to eat - then much time, energy, and thought has to be put in to getting rid of the flea beetles.
