1. Economic Analysis of the Chile Industry Rhonda Skaggs Professor Ag Economics & Ag Business

2. Earlier Research & Publications A Survey of Southern NM Chile Producers R. Skaggs, M. Decker, D. VanLeeuwen Ag Experiment Station Research Bulletin #782, Jan. 2000 Drip Irrigation and Southern NM Chile Pepper Production: A Survey of Producers R. Skaggs, M. Hillon, and R. Phillips Ag Experiment Station Research Bulletin #784, Aug. 2001 Predicting Drip Irrigation Use and Adoption in a Desert Region R. Skaggs Agricultural Water Management, Volume 51, 2001

3. Recent Research The NM Chile Pepper Industry: Description, Labor Issues & Economic Impacts AEEC Master’s thesis Teri Hall Monte Carlo Simulation of Flood-Furrow & Drip Irrigation Systems in Doña Ana Cnty, NM AEEC Master’s thesis Elizabeth Holland

4. Publications from Hall thesis… New Mexico’s Chile Pepper Industry: Chile Types & Product Sourcing Ag Experiment Station Research Bulletin #___ Has been reviewed, accepted for publication Economic Impact of the NM Chile Pepper Industry Ag Experiment Station Research Bulletin #___ Has been reviewed, accepted for publication

5. New Mexico Chile Pepper Industry Source: Processor Interviews, 2001

6. Sources of Green Chile & Cayenne Peppers Used by NM Chile Pepper Processors

7. Sources of Red Chile Peppers Used by NM Chile Processors

8. Chile Peppers Processed in Southern NM by Chile Type & Growing Region Source: Data compiled through processor interviews conducted 05/2001 – 09/2001

9. Total Estimated Industry Workforce Needed by Month Source: Eastman, 1996, Processor interviews conducted 5/2001- 9/2001

10. IMPLAN Modeling Input-Output analysis Direct, indirect & induced economic impacts Backward linkages 1998 data Doña Ana, Luna & Hidalgo Counties –86% of pepper production –74% of harvest chile acreage –Green chile, jalapeño & red chile industries –Vegetable production, canning, dehydration, freezing, etc.

11. Statewide Employment Impacts of NM Pecan Production 1.Direct employment –610 jobs –Farm level production 2.Indirect employment –480 jobs –Ag services –Other services –Retail & wholesale trade 3.Induced employment –209 jobs –Retail & wholesale trade –Other services 4.Total employment –1,299 jobs –Full time equivalents –1998 data –IMPLAN model

12. Statewide Output Impacts of NM Pecan Production 1.Direct output –$47.3 million –Farm level production 2.Indirect output –$19.4 million –Ag services –Manufacturing –Retail & wholesale trade 3.Induced output –$13.1 million –Other services –Retail & wholesale trade –Finance, insurance, real estate 4.Total output –$79.8 million –Full time equivalents –1998 data –IMPLAN model

13. Statewide New Mexico Pecan Production Multipliers SectorEmployment Multiplier Output Multiplier Farm level pecan production 2.13 1.69

14. Questions?

15. Chile Pepper Imports From Mexico Through New Mexico Ports of Entry Source: Medrano, 2001; Coppenbarger, 2001

16. Chile Pepper Acreage Harvested in 1999 Source: NMDA 1994 - 1999