CLIP funding is no longer available. All funding has been issued.
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 fruit and vegetable crops, availability and timeliness of chile harvest and processing labor is especially critical.
In response, the State of New Mexico is providing $1 million in financial assistance to the New Mexico chile industry through the Chile Labor Incentive Program (CLIP). 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 New Mexico chile crops from the 2021 harvest season through the 2024 harvest season, or until funding has been exhausted.
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. During the 2021 harvest season, the chile industry faced an unprecedented 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 in 2021 was 8,500 acres, or 51,000 tons, and the total value was approximately $44.9 million. 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 in New Mexico.
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 from the 2021 harvest season through the 2024 harvest season, or until funding has been exhausted.
Industry data indicated that the chile processing sector typically employs approximately 1,700 workers and was 700 employees short of being fully-staffed. This trend is expected to continue in future harvest seasons.
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 on the NMDA website.
Processors Applying for CLIP:
- Applicants must be processors operating in the state of New
- Processors may claim CLIP assistance for labor cost expenses incurred between August 16, 2021 and April 1, 2025. The deadline for all applications is May 1, 2025. Any claims received after this date are subject to
- Claims may be submitted to NMDA on a weekly or monthly basis. However, processors are encouraged to submit early and frequent claims, as these funds are limited and will be disbursed on a first-come-first-serve basis until the allocated funds have been fully The maximum funding associated with CLIP is $1 million.
- Processors may claim the CLIP assistance to enhance regular hourly wages incurred during the chile harvest season to incentivize and attract seasonal processing
- Any seasonal employees paid at a rate in excess of $19.50 per hour are not eligible for
- The maximum premium payment will not exceed $4.50 per hour.
- NMDA staff will conduct periodic field and site
- 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
Grower/Contractor:
CLIP aims to assist the chile manufacturing industry in its efforts to incentivize the recruitment and/or retention of the seasonal labor workforce needed from the 2021 harvest season through the 2024 harvest season, or until funding has been exhausted.
Industry data during the 2021 season indicated that the average seasonal labor demand for chile growers was 1,300 harvest workers, and farmers were 650 workers short of that need.
Growers and labor contractors 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 on the NMDA website.
Growers or Labor Contractors Applying for CLIP:
- The applicant must be a grower or labor contractor farming or harvesting chile in the state of New Mexico.
- Growers and labor contractors may claim CLIP assistance for labor cost expenses incurred between August 16, 2021 and April 1, 2025. The deadline for all applications is May 1, 2025. Any claims received after this date are subject to
- Claims may be submitted to NMDA on a weekly or monthly basis. However, growers and labor contractors are encouraged to submit early and frequent claims, as these funds are limited and will be disbursed on a first-come-first-serve basis until the allocated funds have been fully The maximum funding associated with CLIP is $1 million.
- Growers and labor contractors may claim CLIP assistance to enhance regular hourly wages incurred during the chile harvest season to incentivize and attract seasonal harvest
- Seasonal harvest labor paid at a rate in excess of $19.50 per hour are not eligible for
- The maximum premium payment will not exceed $4.50 per hour.
- NMDA staff will conduct periodic field and site
- Payments to the grower or labor contractor are 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 workers employed and/or contracted within the associated application term (i.e. week, month, season).
For questions, please email clip@nmda.nmsu.edu or call NMDA Marketing and Development at 575- 646-4929.
CLIP is available to New Mexico chile growers/contractors and processors and is subject to funding availability. Updated March 14, 2022.