New Mexico Chile Labor Incentive Program (CLIP)

Program Overview:
The COVID-19 pandemic has posed a number of significant challenges to the New Mexico agricultural
industry, especially with the unprecedented labor shortages presently faced by New Mexico chile
growers and processors. Like many fruits and vegetable crops, availability and timeliness of chile
harvest and processing labor is especially critical.

In response, the State of New Mexico is providing financial assistance to the New Mexico chile industry
utilizing $5 million in American Rescue Plan Act (ARPA) funds. These funds will be administered by 
the New Mexico Department of Agriculture (NMDA). The intent of CLIP is to support both the chile
farmers and chile processors in their effort to incentivize hiring and retention of the seasonal workforce
necessary to harvest and process the 2021 New Mexico chile crop.

Download the applications by clicking on the boxes below. 

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According to the New Mexico Chile Association (NMCA), the chile industry typically employs a total
seasonal workforce of 3,000 workers between the farm and the processor. At present, the industry is
facing a 45% labor shortage, or 1,350 seasonal employees.

According to the USDA National Agricultural Statistics Service (NASS) and the NMDA, total
harvested chile acreage in New Mexico was 8,500 acres or 68,000 tons, and the total value was
approximately $51.8 million in 2020. NMCA reports that over 60% of the harvested acres are picked by
hand.
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According to the May 2021 report from USDA Economics, Statistics and Marketing Information
System, farmers paid an average of $15.23/hour. NMCA reports the average wage paid is approximately
$15.00/hour and the average seasonal per-ton harvest rate to a contractor is $150 per ton.

Based on the data, and industry input, this program is designed to incentivize labor needed by offering
chile growers and processors the ability to attract and retain chile harvest workers and chile processing
employees of the New Mexico chile crop throughout the 2021 chile season (August to October).

CLIP is available to NM Chile Growers and NM Chile Processors and is subject to ARPA funding availability.

Processor:
CLIP aims to assist the chile manufacturing industry in its efforts to incentivize the recruitment and/or
retention of the seasonal labor workforce needed throughout the 2021 chile harvest season and to
supplement those added staffing costs.

Industry data indicates that the chile processing sector typically employs approximately 1,700 workers
and is presently 700 employees short of being fully-staffed.

Processors may submit CLIP reimbursement applications and supporting documentation in person to
the NMDA state office at 3190 S. Espina in Las Cruces, via mail to MSC 3189 PO Box 30005, Las
Cruces, NM 88003-8005, or via email to clip@nmda.nmsu.edu. CLIP information and claim forms may
be found at the NMDA website at www.nmda.nmsu.edu.

Processors Applying for CLIP:

• • Applicants must be processors operating in the state of New Mexico.
• • Processors may claim CLIP assistance for labor cost expenses incurred between August 16, 2021 and October 31, 2021. The deadline for all applications is November 30, 2021. Any claims received after this date are subject to denial.
• • Processors may claim the CLIP assistance to enhance regular hourly wages incurred during the 2021 chile harvest season to incentivize and attract seasonal processing workers.
• • Any seasonal employees paid at a rate in excess of $19.50 per hour are not eligible for CLIP.
• • The maximum premium payment will not exceed $4.50 per hour.
• • Claims may be submitted to NMDA on a weekly, monthly or season-end basis. However, processors are encouraged to submit early and frequent claims, as these funds are limited and will be dispersed on a first-come-first-serve basis until the allocated ARPA funds have been fully utilized. The maximum funding associated with CLIP is $5 million.
• • NMDA staff will conduct periodic field and site inspections.
• • Payment to processors is on a reimbursement basis and will only be made upon receipt of a completed application and all required documentation (see associated application and terms). Any and all claims must include the total number of employees within the associated application period (i.e. week, month, season).
• • Chile processors must provide an origin document (i.e. bill of lading, receiving document or grower report) indicating New Mexico chile was processed during the reporting period.

For questions, please email clip@nmda.nmsu.edu or call NMDA Marketing and Development at 575-646-4929

Download the applications by clicking on the boxes below. ​

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CLIP Program Overview

Grower - Processor Application

Labor Contractor Application

Employee Earnings Spreadsheet