The Hatch Chile Festival is an annual event that occurs each Labor Day. This event attracts people world wide to a place known as the chile capital of the world. The small town has accommodated up to 30,000 people for this event. This small farming community is known world wide for raising very good chile. Other crops such as onions, cotton, and corn are also raised there. Irrigation of local farms is accomplished by water wells as well as irrigation ditches which divert water from the Rio Grande and two lakes approximately 20 miles north of Hatch named Caballo (Spanish for Horse) and Elephant Butte Reservoir (named after a rock formation in the middle of the lake that looks similar to an elephant). Hatch is 40 miles north of Las Cruces, New Mexico on Interstate 25.
Hatch and the surrounding area (Doña Ana Conty) was hard hit by flooding in Summer 2006. The area was declared a disaster (#1659) and FEMA established a Disaster Recovery Center in the city.
There were 538 households out of which 43.7% had children under the age of 18 living with them, 56.7% were married couples living together, 14.3% had a female householder with no husband present, and 25.1% were non-families. 20.6% of all households were made up of individuals and 11.0% had someone living alone who was 65 years of age or older. The average household size was 3.11 and the average family size was 3.63.
In the village the population was spread out with 35.7% under the age of 18, 9.7% from 18 to 24, 24.3% from 25 to 44, 17.9% from 45 to 64, and 12.3% who were 65 years of age or older. The median age was 30 years. For every 100 females there were 94.5 males. For every 100 females age 18 and over, there were 93.9 males.
The median income for a household in the village was $21,250, and the median income for a family was $23,819. Males had a median income of $21,923 versus $17,188 for females. The per capita income for the village was $14,619. About 28.5% of families and 34.5% of the population were below the poverty line, including 50.1% of those under age 18 and 14.6% of those age 65 or over.