Do you have to reprime the pump or just wait for it to come back?
The maximum suction lift any pump can draw water from is about 22′ but centrifugal jet pumps “cheat” that depth slightly and gain a few more feet of lift. It sounds as if the water level is drawing down at least more than the pump can draw from which means either your pump needs repair (clogged venturi? worn impeller?) or you need to convert to a deep well setup. A submersible would be fine but it may be hard to find one that would fit your 3″ well. A deep well jet will be basically the same as you have now except fitted with an injector in the well and two pipes between it and your pump.
A good well pump installer will be able to suggest what is best in your case.