It is very possible for neighboring wells to be reducing your water supply. One or two is usually not noticed, but a mobile home park with dozens or hundreds of new wells can make a big difference. We have problems in our area with new subdivisions moving in next to a big cotton farm. Everything is fine until about March when the irrigation wells all get turned on. That is when the screaming begins. What we would do is drill through the sand aquifer into the clay. Usually we would stop there. But we would change bits and go on down in the clay about 20' and set the casing accordingly. This does not supply more volume of water, but puts your pump below the water that is available. Even if there is only 4" of water left in the aquifer, your pump is 20' deeper and able to draw water when the neighbors cannot.
Every area is different though. You might drill your well 20' deeper and drill through the bedrock, letting what water you have flush down to a deeper aquafer. Most likely what water you have comes from above 62', which is why the well was drilled that way. In that case drilling deeper won't get you any more water, but might make a good sump like we do here when needed.
One thing for sure is a well that makes iron is going to need rehab. Not one of my specialties, but there are people who can acidize, swab, bail, and clean that well like it was new. Regular treatment could also keep the problem from building up.