If you knew something about farming (and hey, for all I know you do), you would know that farmers, large and small, have been using specially-bred hybridized crops since my Dad was a boy, and probably before that. They were bred the old fashioned way (and I speak as an experienced corn-detasseler) rather than by genetic engineering, but the fact is that for many decades American farmers have been using seeds bred by corporations that don't breed true and have to be repurchased every year. Drive through the Midwest, and you can see signs by the side of the road at the end of many rows of corn plugging the brand names. I don't see genetic engineering changing the basic economics of the existing system.

As for the small farmer and the free market, we could go into government subsidies, property and estate taxes, zoning regulations, and many other government things that have shoved a lot of small farms into the hands of corporations and developers, but that's a whole thread to itself.

Re: subsidies

For a good time, check out this site. While there are certainly subsidies to small farms (I got relatives on this list), large businesses and other unlikely recipients get a big chunk.