Federal Seizures of Product in New Mexico: A Growing Clash Between State and Federal Law
New Mexico’s industry is thriving under state law, yet businesses operating in the Southern region face a harsh reality: federal enforcement at Border Patrol checkpoints continues to disrupt the supply chain. Along Interstate 25 between Las Cruces and Albuquerque, U.S. Customs and Border Protection (CBP) agents have seized hundreds of thousands of dollars worth of state-legal products, citing federal prohibition.
The Scope of Seizures
Licensed companies in New Mexico have collectively lost over $470,000 in product due to federal enforcement actions. According to the New Mexico CCD, 17 formal reports of seizures have been documented, affecting businesses transporting goods within the state. Since February 2024 alone, federal agents have confiscated more than $350,000 worth of product from at least 14 companies at southern New Mexico checkpoints.
The El Paso Sector of CBP, which oversees these checkpoints, reported over 7,000 seizure incidents in 2025, totaling 56,800 pounds of confiscated material.
Checkpoint Operations and Federal Enforcement
Border Patrol checkpoints, located up to 100 miles from the U.S.-Mexico border, are intended for immigration enforcement but are also used to intercept federally illegal substances. Since these products remain classified as Schedule I controlled substances under federal law, CBP agents maintain the authority to seize them, despite their legalization in New Mexico.
For businesses, this means potential detainment, product confiscation, and financial losses, even if they are operating within the bounds of state law. In response, some companies have strategically moved operations north of these checkpoints to avoid seizure risks.
Businesses Affected by CBP Seizures
Several licensed companies in New Mexico have faced major financial setbacks due to product seizures at federal checkpoints, including:
Mesilla Valley Extracts (Las Cruces)
Baked Chicken Farm (Berino)
Super Farm / Smokey Road Farms (La Mesa)
Impact Farms (Albuquerque)
Chadcor Holdings NM / Top Crop (Las Cruces)
Mylars (Las Cruces)
Rollin Love (Golondrinas)
Desert Peaks Farms (Mesilla Park)
These businesses collectively filed a federal lawsuit against the Department of Homeland Security (DHS) and CBP, alleging violations of their constitutional rights. The lawsuit claims that more than $1 million worth of product, cash, and other property has been unlawfully seized at these checkpoints.
Notable Seizure Incidents
March 2024 – Head Space Alchemy: Two employees detained at a checkpoint north of Radium Springs lost $7,500 worth of product.
February 2024 – Top Crop: The operations manager was stopped with 35 pounds of material, valued at $85,000, and was detained for nearly two hours.
March 2024 – Animas: The company's president lost $6,300 worth of product at the same checkpoint.
Smokey Road Farms & Desert Peaks Farms: Both growers have reported multiple seizures at CBP checkpoints in southern New Mexico.
The Larger Battle Over Federal vs. State Laws
This conflict between state legalization and federal prohibition continues to cause uncertainty for New Mexico’s market. State officials have engaged in ongoing discussions with federal agencies, but CBP shows no signs of changing its enforcement stance. The lawsuit against DHS and CBP may set a critical legal precedent, shaping the future of enforcement at federal checkpoints in legalized states.
For now, businesses in southern New Mexico remain at risk, forced to navigate a legal gray area that can mean the difference between growth and financial devastation.
