CLIP funding is no longer available. All funding has been issued.
Updated 3/14/2022
What is the Chile Labor Incentive Program (CLIP)?
The State of New Mexico is committing $1 million to fund a supplement wage assistance program for the New Mexico chile industry amid concerns about a labor shortage impacting production of the state’s signature crop.
Who is administering the program?
The New Mexico Department of Agriculture.
Who can apply for this funding?
New Mexico chile growers, chile labor contractors and chile processors.
For CLIP benefits associated with harvesting the 2021-2024 New Mexico chile crop, who completes the application, the grower or the labor contractor?
- If the grower hires and pays the laborers directly, the grower should complete and submit the application.
- If the grower hires a labor contractor, the labor contractor should complete and submit the application.
How do I get the funding?
You must complete the appropriate application (grower/processor OR labor contractor application) and submit the application and supporting documents to NMDA. All documents, including an overview of the program, may be found on the NMDA website.
Do I get the funding up front?
No. Funding will be awarded on a reimbursement basis. Payment will only be made upon receipt of a completed application and all required documentation. Claims may be submitted to NMDA on a weekly or monthly basis.
Early and frequent claims are encouraged, as funds are limited and will be disbursed on a first-come-first-serve basis until all the funding has been used or until the last day of the reporting period, April 1, 2025. The deadline to submit applications and supporting documents is May 1, 2025.
How often can I claim?
We encourage claims be submitted on a weekly basis, as funding is first-come-first-serve until all funding is expended or the program expires on April 1, 2025.
What can the funding be used for?
Funding can only be used to supplement the wages of existing and prospective workers conducting work specifically related to harvesting or processing of the 2021-2024 New Mexico chile crop.
What is the maximum wage the funding will cover?
The maximum premium payment from CLIP funding is $4.50 per hour. Funds may be used to enhance wages for laborers up to a maximum of $19.50 an hour. Wages in excess of $19.50 per hour are not eligible for CLIP. Examples:
- If a laborer is earning $13 an hour, the program would allow for an additional $4.50 an hour, so the laborer would earn $17.50 an hour.
- If a laborer is earning $16 an hour, the program would only allow for an additional $3.50 an hour to equal $19.50 an hour, because wages in excess of $19.50 per hour are not eligible.
Is there a limit to the funding I can receive?
No, as long as funding is available.
Is the funding taxable to the laborer?
The funding becomes part of the laborer’s income, and income is taxable. NMDA encourages people consult with a tax professional regarding any tax-related questions.
How will NMDA know I have workers in the field harvesting chile?
Anyone who submits a claim is subject to a site visit by NMDA inspectors for the purpose of compliance and assessment.
How long will it take for the reimbursement?
Approximately two weeks.
What is the deadline to apply?
CLIP assistance is available for labor cost expenses between August 16, 2021 and April 1, 2025. The deadline for all applications and claims is May 1, 2025.
Can I still submit a claim for the 2021 harvest season?
Yes, the CLIP encumbers the 2021-2024 harvest seasons.
How will I know how much funding is left?
A running balance will be available on the NMDA Chile Labor Incentive Program webpage.
Who do I contact for more information?
NMDA Marketing & Development Division: email clip@nmda.nmsu.edu or call and 575-646-4929.