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Abstract
The chile pepper has long been a
part of the history and culture of the
Southwest, and now is an important
horticultural crop in New Mexico.
Recently the industry has faced
many challenges including cheaper
imports and rising production costs,
which have reduced chile acreage
in New Mexico by almost half. To
compare production costs in
southern New Mexico and northern
Mexico, representative cost and
return estimates for the two regions
were prepared. Even though U.S.
producers have higher gross
returns, the overall return to land
and risk is greater for producers in
Chihuahua because of lower
production costs (largely due to
lower wage rates). This study
found advantages and
disadvantages for producers on
both sides of the border.