How does growing genetically modified plants affect crop insurance?
In 2003, the global crop area of genetically modified plants increased to 67.6m hectares, wih the USA as the biggest producer by far accounting for 42.8m hectares, followed by Argentina (13.9m hectares) and Canada (4.4m hectares). It is anticipated that the global crop area of GM plants will continue to grow, particularly in countries like China, South Africa and Brazil. Genetic modifications so far focus on herbicide tolerance and insect resistance. But since the main perils in crop insurance are natural hazards like drought, hail, frost, and windstorm, the effects of genetic modifications on crop insurance at this point are minor. In the USA, GM plants are insured using the same terms and conditions as conventional plants, i.e. no distinction is made. So far, there have been no indications of significant differences in exposure. The cultivation of genetically modified plants in Europe has become more difficult owing to restrictive regulations and intensive debate on the risks involve
