Young recorded this song at Village Studios in Los Angeles on January 21, 1975, but it wasn't released until June 2020. That's the story with most the songs on Homegrown
Young wrote and recorded all the tunes for the album while dealing with the pain of his breakup with actress Carrie Snodgress, the mother of his first child (son Zeke). Some of the songs on the album deal with the subject unambiguously (notably "Separate Ways
"), but this one is less specific.
"Mexico" has Young singing wistfully about going to Mexico to slow down and live a simple life. The opening verse, though, does indicate the Snodgress anguish with the lines:Why is it so hard to hang on
To your love
Oh, the things we do
The pair broke up because Snodgress had been sleeping around on Young, which may have inspired the statement "oh, the things we do." Of course, as Young later said in the book Shakey
, he too was sleeping around on Snodgress. He admitted it took him some time to see his own hypocrisy, but maybe even back in '75 he got a whiff of it. He does say "the things WE do," after all.