Premier Bob Carr announces the ban on the production of GM food crops (such as canola, clover, mustard and field peas) until 2006 in New South Wales, Australias most populous state.

A group of Australian farmers has commended the NSW Government for its decision for a three-year ban on the commercial introduction of genetically modified (GM) food crops.

Premier Bob Carr yesterday announced the ban on the production of GM food crops such as canola, clover, mustard and field peas until 2006 in New South Wales, Australia's most populous state.

Bob Carr, kept his original promise made a year ago to extend the three year ban if Labour was re-elected.

Elsewhere in Australia, Tasmania and Western Australia are considering declaring their entire State GM free, and the South Australian Government made an election commitment similar to NSW to introduce GM free zones across the State.

However, the Queensland and Victorian State Governments have announced no intention to introduce such GM commercial canola bans.

Group spokesman Scott Kinnear said the ban was sensible. "It is a precautionary decision and it proves that the NSW Government is listening to farmers," he said in Sydney.

But the farmers joined the Australian Greens in expressing concerns about trials of GM food crops, and their potential cross-contamination with non-GM crops.

Queensland farmer Julie Newman questioned whether the farming industry was ready for GM crops, and said farmers were being misled when they were told they would make more money from them.

"Non-GM crops are offering a lot more," she said. "(GM crops) will cause serious industry damage. The biggest thing consumers should remember is that if farmers can't grow non-GM crops, consumers can't buy non-GM crops."

Canadian farmer Bob Willick is leading a class action of 1000 farmers against Canadian companies Monsanto and Bayer for damages caused by the release of GM canola in Canada.

Today in Sydney Mr Willick warned there would soon be no canola, mustard, and perhaps wheat grown organically in Canada.

"It could be the end of organic farming in Canada," he said.

Mr Willick said Australia had a great opportunity to export to different markets with the banning of GM crops.

Tests on GM crops were acceptable, but only under secure conditions, Mr Kinnear said.

"If they are going to have open field trials, where there is the possibility for cross-pollination and cross-contamination, then we would have a problem with that."