It traded higher individual risk for higher systemic risk.
There are ways to deal with systemic risk. I think the best defense is to simply stockpile 2+ years of food for every person in the US by saving a portion of the increased yield.
Big machines like seed producers and oil companies are extremely lazy when it comes to dealing with inevitable contingencies. Stockpiling food seems like a defensive strategy to me. A better approach would be to proactively encourage seed stock variety even if those seeds do not have a high yield. Then when something like this happens it will be much easier to pick a resistant strain from the naturally diverse population. Overall average production and profits might go down but there won't be any spikes in crop loss because of lack of diversity.
Diversity reduces average crop yield so each farmer would have significant incentive to "cheet" the system. With storage it's fairly easy to varify your approach is actually being caried out. Also food storage protects vs a wider range of issues.
EX: Wide scale contamination of the food supply, War etc.
