The objective of this paper is to shed new light on the economic
effects of GM agriculture on organic agriculture and their co-existence in
the United States over 1996-2012. To do this, we first describe organic and
GM farming systems, regulation, labeling, trends in production and consumer
demand. Then, we turn to a discussion of the economic impacts of GM
agriculture on organic agriculture and the more sensitive issue of peaceful
co-existence. We discuss adventitious presence; segregation, coordination and
identity preservation; spillovers and legal issues, insurance against
uncertain events and local voting on local production methods. We also
identify and examine some of the concerns raised by organic farmers about
hardships placed on them by GM agriculture and the realities of the market
for seed, food and feed. The likely evolution of these farming systems under
alterative policies are identified and evaluated.