Since the legalization of recreational cannabis in New Mexico in 2021, the state has witnessed a growing debate: will cannabis surpass the traditional chile crop as its top agricultural product? Current assessments of farms across New Mexico reveal a complex agricultural landscape grappling with both opportunity and challenges.
In the Española Valley, Matt Romero, a seasoned farmer, showcases his thriving chile crop, specifically the Big Jim peppers, known for their size and flavor. Romero, who has been a fixture at the Santa Fe Farmers’ Market for over two decades, typically brings in 1,000 pounds of peppers each week. However, he has contemplated shifting his focus to cannabis due to its lucrative nature, with the cannabis market generating over $1.5 billion in sales since legalization compared to chile’s $132.5 million over the same period.
New Mexico is known for producing nearly 80% of the country’s chile, but the crop faces significant challenges, including water shortages, labor issues, and increasing production costs. The state saw a drastic decline in chile acreage, from 34,000 acres in the early 1990s to just 8,500 acres in 2023. The quantity produced also fell from 106,500 tons to fewer than 50,000 tons during the same period. Factors contributing to this decline include cheaper imports from Mexico following the North American Free Trade Agreement (NAFTA) and difficulties in finding labor for the physically demanding work of harvesting.
Stephanie Walker, a chile genetics expert, is working on developing a new pepper variety, the NuMex Odyssey, designed for mechanical harvesting to address labor shortages. This new breed aims to simplify the harvesting process, with its plants featuring a single stem and higher-placed fruit for easier picking.
In contrast, cannabis farming presents its own set of complexities. Cannabis growers in New Mexico must navigate stringent regulations, including detailed tracking of each plant and mandatory lab testing for contaminants. The initial rush in cannabis production led to an oversupply, driving prices down from $90 to $60 per ounce. This price drop has severely impacted small farms and dispensaries, with many struggling to remain profitable.
Currently, New Mexico has 670 recreational-use dispensaries, but nearly 70% of them report earnings below $50,000 a month. As the market stabilizes, experts warn of a reckoning in the industry, as many dispensaries are operating on thin margins.
Farmers like Tyler Holmes, who manages Morrow Farms, express concern about the future of both crops. The competition for land and water resources is intensifying as developers eye agricultural land for potential housing projects, further threatening local farming. The water table continues to decline, affecting crop yields and increasing the risk of dust storms.
The challenges facing New Mexico’s traditional chile farming and the emerging cannabis market reflect a broader narrative of adaptation and survival in a changing agricultural environment. Farmers must weigh the cultural significance of chile against the profitable lure of cannabis, all while navigating a landscape fraught with economic and environmental pressures.
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