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. 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. 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:
Download the applications by clicking on the boxes below.
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