Under a bill gaining support in the Statehouse, Vermont could be the first state in the nation to require labels on products made with genetically modified crops. Lawmakers are now trying to craft the measure so it can withstand an expected court challenge.

Sen. Bernie Sanders' plan to give individual states the authority to require the labeling of genetically engineered foods has been defeated in the U.S. Senate by a three to one margin. His proposal was one of more than 70 amendments to the 2012 Farm Bill.

Two organizations filed a lawsuit Tuesday against Pinnacle Foods Group, saying that the company's labeling of genetically-modified and synthetic foods as "all natural" violates the Vermont Consumer Protection Act.

Senator Bernie Sanders is urging his colleagues to allow individual states to require the labeling of all genetically engineered foods.

Agriculture Secretary Chuck Ross says the Shumlin administration agrees that people should be able to know whether GMOs are in their food but he says the threat of lawsuit makes current legislation untenable.

Genetically engineered products are prevalent in the food system, from fruits and vegetables, to processed foods. But critics of GMOs say consumers don't have access to reliable information about the genetically modified organisms they are eating.