What the " new crop varieties" here refer to?

[NewHopeR]

1) or 2)?
1): new genetically modified crop varieties
2): new naturally grown crop varieties

Context:

Moreover, the policies of Obama’s regulatory agencies toward genetically engineered crop plants have prevented the development of new crop varieties that could have blunted the impact of this and future droughts. It is far better to mitigate a natural disaster than to respond to it after the fact.
The benefits of genetically engineered crops are proven. According to the International Service for the Acquisition of Agri-Biotech Applications, from 1996 to 2010, the use of modern genetic engineering technology increased crop production and value by $78 billion; it obviated the need to apply of 443 million kg of pesticide active ingredients to crops; in 2010 alone, it reduced CO2 emissions by 19 billion kg, the equivalent of taking approximately 9 million cars off the road; it conserved biodiversity by saving 91 million hectares of land; and it helped alleviate poverty by increasing the agricultural productivity and food security of 15 million small farmers worldwide.

More:
Obama's Shallow Farm Rhetoric Compounds Plight Of Midwest Drought - Forbes

[JMurray]

1) or 2)?
1): new genetically modified crop varieties
2): new naturally grown crop varieties
Context:
Moreover, the policies of Obama’s regulatory agencies toward genetically engineered crop plants have prevented the development of new crop varieties that could have blunted the impact of this and future droughts. It is far better to mitigate a natural disaster than to respond to it after the fact.
The benefits of genetically engineered crops are proven.

The writer is making the case that the regulatory agencies have been too cautious in their attitude towards genetically modified crops and have thereby prevented the development of modified varieties that may be able to better withstand drought. So (1) is correct.

not a teacher