New Mexico‘s economy has been based in cattle ranching and farming for two centuries, and there are currently 23,000 farms operating in the state. Wheat is the highest volume crop in terms of acreage with nearly one million acres in production, and corn, for grain, is second largest. For the smaller grower there are more than 60 farmers’ markets statewide.
New Mexico is the number one state for chile production and the number two state in pecan production in the nation. Competitive electric prices, land costs, and wages separate New Mexico from other states.
- New Mexico is the fifth largest state in the nation.
- Home to six of the seven life zones in the world. Long growing seasons and mild winters allow crops to be produced year round. The abundant sunshine and dry weather also produce less mud and fewer diseases for farm animals.
- Number one in the nation for chile production and number two in pecan production; the state also produces pistachios and peanuts.
- New Mexico ranks #9 (2013) for milk production in the nation and currently has 156 dairies that ship milk across state lines. There are 15 processing plants in the state that produce a wide range of products from packaged fluid milk to cheese to whey protein concentrate.
- The state is home to several cheese plants. Two of the largest are Southwest Cheese (Glanbia and DFA), in Clovis, and Leprino Foods, in Roswell.
- There are over 1.5 million head of cattle in the state.
- New Mexico is also known for its organic produce, herbal and homeopathic products, and wineries.
- Hatch Chile Express
- Gruet Winery
- Young Pecan
- Leprino Foods
- Vivác Winery
- Albuquerque Tortilla
- Stahmann Farms
- Aqua Ranch
- Franco Whole Foods
- Southwest Cheese
- La Chiripada Winery
- Creamland Dairies
- General Mills
- Baker Produce
- Prepared Foods
- Clair Winery
- Fatman’s Beef Jerky
Agricultural Business Tax Deductions and Exemptions
- Feed for livestock, including the baling wire or twine used to contain the feed, fish raised for human consumption, poultry or animals raised for hides or pelts and seeds, roots, bulbs, plants, soil conditioners, fertilizers, insecticides, germicides, insects, fungicides, weedicides and water for irrigation.
- Warehousing, threshing, cleaning, harvesting, growing, cultivating or processing agricultural products including ginning cotton and testing and transporting milk.
- Feeding, pasturing, penning, handling or training livestock and, for agribusinesses, selling livestock, live poultry and unprocessed agricultural products, hides and pelts.
- Fifty percent (50%) of receipts from selling agricultural implements, farm tractors or vehicles.
- Receipts from sales of veterinary medical services, medicine or medical supplies used in the medical treatment of cattle if the sale is made to one of the following:
- A person engaged in the business of ranching or farming, including dairy farmers.
- A veterinarian who is providing veterinary medical services, medicine or medical supplies in the treatment of cattle owned by a person engaged in the ranching or farming business.
Beer and Wine Producers Preferential Tax Rate
Microbreweries producing less than 5,000 barrels of beer annually and small wineries producing less than 560,000 liters of wine per year qualify for a preferential tax rate. The Liquor Excise Tax Act imposes taxes on beer, wine and spirituous liquors. The basic tax rate for wine is 45 cents per liter. Wine produced by a small vintner carries a tax of 10 cents per liter on the first 80,000 liters and 20 cents on production over that level up to 560,000 liters. The basic tax rate for beer produced by a brewery is 41 cents; beer produced by a microbrewery (producing less than 5,000 barrels annually) is taxed at 8 cents per gallon.
For more information about all incentives New Mexico has to offer, click here.
Brochure: New Mexico Oil & Gas
Brochure: New Mexico Renewable Energy
Map: New Mexico