Greg Cunningham: Trump’s Tariffs Raised Costs For New Mexico’s Farmers, Including The State’s $54.8 Million Chile Industry

New Mexico’s $54.8 Million Chile Industry Produced Nearly Half Of All Chiles In The U.S.

2024: New Mexico Was Ranked 1st In Chile Production Nationally, Producing 44.8% Of Chile Peppers In The U.S. According to the USDA National Agricultural Statistics Service, New Mexico was ranked 1st in chile production nationally, producing 44.8% of chile peppers in the U.S. [USDA National Agricultural Statistics Service, 2024 New Mexico Annual Bulletin, August 2025]

• 2025: New Mexico Produced 54,675 Tons of Chiles. “Total chile production in New Mexico for 2025 totaled 54,675 tons, a 5 percent increase from the 2024 production of 52,000 tons, according to the Mountain Regional Field Office of the National Agricultural Statistics Service, USDA in cooperation with the New Mexico Department of Agriculture. Of the 54,675 tons produced, 44,575 tons were green chile and 10,100 tons were red chile. In 2025, the green chile yield was 11.8 tons per acre, and the red chile yield was 2.3 tons per acre. For comparison, the green chile yield was 11.5 tons per acre, and the red chile yield was 2.0 tons per acre in 2024.” [USDA National Agricultural Statistics Service, 2025 New Mexico Chile Production, accessed 5/12/26]

2025: New Mexico’s Utilized Chile Production Was Valued At $54.8 Million. “A breakdown of the 2025 chile production is as follows: 81.5 percent was sold for processing; 18.0 percent was sold for fresh market; and 0.5 percent was not sold. The value of utilized chile production in 2025 was estimated at $54.8 million, compared with $52.2 million in 2024. In 2025, chile sold for processing was valued at $39.4 million, while chile sold for fresh market was valued at $15.4 million.” [USDA National Agricultural Statistics Service, 2025 New Mexico Chile Production, accessed 5/12/26]

Trump’s Tariffs Increased Production Costs For American Farmers, Forcing Them To Pay A Premium For Essentials Such As Fertilizer

North Dakota State University Trade Monitor: “As Of Early January 2026, Farmers Buying Fertilizer From Local Retailers Continue To Face Price Stickiness, Paying Tariff‐Induced Premiums Above Pre‐Tariff Baseline Levels.” “Retail fertilizer still carrying tariff effects. Wholesale prices fell sharply after the November rollback, but retail prices are adjusting more slowly. As of early January 2026, farmers buying fertilizer from local retailers continue to face price stickiness, paying tariff‐induced premiums above pre‐tariff baseline levels.” [North Dakota State University Trade Monitor, January 2026]

North Dakota State University Trade Monitor: U.S. Farmers And Input Suppliers May Have Borne Economic Costs Substantially Greater Than The Tariff Revenue Itself. “Tariff pass‐through to farmer prices exceeded the tariff itself (more than complete pass‐through). During peak tariff months, fertilizer pass‐through exceeded the effective tariff rate. This excess pass‐through likely resulted from supply chain disruptions and uncertainties surrounding the tariff policy, meaning U.S. farmers and input suppliers may have borne economic costs substantially greater than the tariff revenue itself.” [North Dakota State University Trade Monitor, January 2026]

A Representative From The South Valley Economic Development Center Descibed Farmers Scaling Back As A Result Of Tariffs, Saying “We’re Not Going To Have The Same Crops That We Had In Years Past”

Briana Smith Of The South Valley Economic Development Center Said Of The Effects Of Tariffs, “We’re Not Going To Have The Same Crops That We Had In Years Past.” “Briana Smith of the South Valley Economic Development Center said a tariff bill held up the organization’s new $5 million produce aggregation facility by two months. ‘We received a tariff — almost a ransom of $47,000 — before they would release our equipment,’ Smith said, describing processing machinery essential to connecting New Mexico farmers with consumers statewide. She said farmers are already scaling back. ‘We’re not going to have the same crops that we had in years past. Green chile takes a lot of water, a lot of fertilizer — that is a given.’” [New Mexico Political Report, 5/7/26]

• Smith: “Green Chile Takes A Lot Of Water, A Lot Of Fertilizer — That Is A Given.” “Briana Smith of the South Valley Economic Development Center said a tariff bill held up the organization’s new $5 million produce aggregation facility by two months. ‘We received a tariff — almost a ransom of $47,000 — before they would release our equipment,’ Smith said, describing processing machinery essential to connecting New Mexico farmers with consumers statewide. She said farmers are already scaling back. ‘We’re not going to have the same crops that we had in years past. Green chile takes a lot of water, a lot of fertilizer — that is a given.’” [New Mexico Political Report, 5/7/26]