Is genetic engineering necessary for the NM chile industry?

In a bit of good timing for the start of this blog, the local free weekly published an article on the use of genetic engineering to strengthen New Mexico's chile crops this week.  Like many large crops, the state's chile is vulnerable to insects and disease, and there's a fair bit of controversy over whether genetic modification is a positive thing for the industry.  The piece pointed out the state legislature's seemingly contradictory stance on the issue, passing a joint memorial recognizing the significance of native seeds in 2007 and then funding a study of the feasibility of developing genetically engineered seeds in 2008.

I won't pretend to know enough about the state of the chile crop (or about genetic engineering, for that matter) to comment, but I'm not sure that the state's position is actually contradictory.  Why can't we support native crops and heritage seeds while at the same time supporting the mass production needs of the industry?  It's a quantity and quality thing, but I'm not sure they need to be in opposition.