While I really hate what companies like Monsanto are doing (I've been hearing about them for at least 5 years. Hello terminator seed.), I see a few positive points for Iraqi farmers:

1) It's unenforcable. Coalition and Iraqi forces have enough on their minds with weekly/daily bombings, so it's not like they'll go fine farmers from the middle of nowhere. I think we all agree that Iraq won't exactly be peaceful in a matter of weeks either, as much as I'd like it to happen.
2) Given enough time, the Iraqi autorities will be able to change that law.
3) Given enough time too, patents fall in the public domain.