ECONOMY
Drought and labor shortages are testing New Mexico’s chile farmers. They’re optimistic anyway.
Producers of the state’s signature crop entered the year with growing acreage, demand
HATCH — You have to be a little crazy to be a farmer — at least that’s how chile farmer Tommy Rosales sees it. But he wouldn’t have it any other way.
“It has its moments. It’s a big gamble,” Rosales said, citing the unpredictability of water and labor. “But I love it to death. I have a regular job, and I’m ready to come back to the farm 100% one of these years.”
Rosales’ farm in Lemitar, and his phone has been ringing off the hook this month, with customers asking when they can expect to see Rosales Farms’ chile at stands in Escondida and Albuquerque. The customers will have to wait until August, when the farm’s peppers are typically ready for harvest and the aroma of chile roasting starts to fill the air.
But for some southern New Mexico farmers, harvest season has been in full swing since early July.
“We seem to be early this year,” said Edward Ogaz, president of the New Mexico Chile Association and a Las Cruces-based chile farmer and processor with farms in Garfield and Berino.
So far, this year’s peppers are looking good, Ogaz said. He expects the industry to produce average-to-above-average volume.
“It looks like a good chile year,” he said.
That optimism comes three years after New Mexico’s chile industry saw some of its lowest production numbers in the last decade.
Over the last 10 years, production has generally ranged between 50,000 and 70,000 tons, and $45 and $54 million. In 2023, local farms produced 46,750 tons of chile valued at roughly $42 million, according to data from the New Mexico Department of Agriculture.
The industry has rebounded in the last couple of years, with 52,000 tons and $52 million produced in 2024 and 54,675 tons and $55 million — a 10-year high in chile production value for the state — last year.
Production numbers for this year are yet to be determined, but Ogaz said 2026 has so far shown growth in chile acreage. Local farmers planted nearly 9,800 chile acres this year, up from 8,200 in 2025.
A ‘fast-and-furious business’
Recent acreage pales in comparison with the 30,000 chile acres New Mexico once had in the ‘80s and ‘90s. Much of the state’s chile production shifted to Mexico due to more favorable water conditions, cheaper labor and legislation that made trade with Mexico easier and cheaper.
“Their laws aren’t the same as ours; they don’t have the same restrictions,” said Axton Franzoy, farm supervisor for Chile River Inc., a produce wholesaler that has locations in Hatch and Deming. “We’re kind of not really on even playing field.”
Franzoy, whose family has been farming in New Mexico for more than a century, said he believes the difficulty of growing chile has also contributed to the decline in New Mexico chile acreage.
“It’s a very risky crop to grow. It’s a fast-and-furious business… and not a lot of people want to do this work anymore,” he said.
For southern New Mexico farmers like Fabian Grajeda of Hatch’s 32-year-old Grajeda Farms, the federal government’s H-2A program — which allows U.S. employers to fill employment gaps by hiring seasonal workers from other countries — has been a saving grace.
“A few years ago, we hired nothing but local people, and they just stopped wanting to work. No locals want to be picking the chile anymore,” Grajeda said. “So we had to resort to the H-2A program, and that’s been really helpful. They’re real good guys, real hardworking.”
Franzoy agreed, saying he thinks the H-2A program is, in part, what has kept New Mexico’s chile farming industry afloat. Machine-picking technology could further alleviate the labor challenge for farmers in the future, though Franzoy believes the harvesting process will remain labor-intensive for a while.
Living on a prayer — and well water
On top of rising costs for fertilizer, tractor parts and fuel, water continues to be an issue for chile farmers, with the state facing ongoing drought.
“We’ve had to rely on well water this year so much,” Rosales said. “In 44 years, this is the worst I’ve ever seen.”
Historically, Rosales Farms has been able to irrigate frequently and wherever. Last year was when greater reliance on well water began, and this year, Rosales said well water makes up to 95% of the water his crops receive.
“And there’s some fields we can’t even water because there’s no rights to the well or there’s just no well on the place,” Rosales said. “A lot of it just relies on mother nature right now.”
Scott Adams, owner of Adams Produce Inc., a Hatch-based wholesaler, has had a similar experience. Two decades ago, he said his farms rarely used well water and were getting several months’ worth of water from the Rio Grande. Now, he said, there is only enough river water for one month.
“We went from having all we wanted to almost nothing,” said Adams, who has been farming for 40 years.
Many chile farmers have turned to drip irrigation to conserve and maximize water supply, a system that Rosales is now seriously considering as well.
This chile season, the weather has not only been dry, but warm. That’s good news for people who like a little bit of bite to their chile, as hot weather produces more capsaicin, which is what gives a pepper its spice.
But for farmers, the heat has brought another challenge: dealing with pests and disease earlier in the season than normal. Franzoy said this problem could affect volume for some farms — but he’s not too concerned about overall production.
“Farmers know how to battle it,” Franzoy said. “Whatever you’ve learned from a previous year, write it down in a journal and then throw the journal away. That’s the easiest way to grow a chile crop because it’s always different the next year.”
Rosales’ father, Mario Rosales, said he and his sons will always find ways to adapt and maintain the flavor his customers have grown to know by heart.
“We work hard every day. Every day,” Mario Rosales said.
Keep on growing
The hard work has resulted in new opportunities for New Mexico’s chile farmers this season.
Grajeda said large distributors from California to Georgia are taking notice of New Mexico’s chile and have recently started purchasing from Grajeda Farms.
It doesn’t come as a surprise to Ogas.
“I don’t care what they say about Texas, I don’t care what they say about Colorado or Mexico. You can taste New Mexico chile,” Ogaz said. “There is something in the water. There is something in the minerals that flow off the mountains into our rivers and our water systems. That’s something all New Mexicans should really be proud of.”
Adams is also proud that he gets to work alongside his wife, Terry, four of their children and their spouses and families.
As he talked about his grandkids getting involved, Adams remembered a conversation he had when he was getting started.
“I was talking to an elderly man when I was young,” Adams recalled, “and he said, ‘Scott, why are you farming?’ And I said, ‘Well, I think it’s going to get a lot better. What about you?’ He says, ‘Well, I got in it because I thought it was going to get better. Now I’m 95,’ and he continues, ‘I don’t know how much better it’s gotten, but I’ve lived a good life doing it.’”
At 62, Adams feels the same.
“I think we have a bright future,” Adams said.
Kylie Garcia covers retail and real estate for the Journal. You can reach her at kgarcia@abqjournal.com.