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Arizona Cancels Land Leases For Saudi Alfalfa Farms Amid Water Crisis

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Arizona Gov. Katie Hobbs this week announced the State Land Department canceled land leases that allow a Saudi-owned farm to pump unchecked amounts of groundwater from the desert state.
One lease held by Fondomonte Arizona in western Arizona’s Butler Valley was canceled Monday, and three others will not be renewed when they expire in February 2024, Hobbs said.
After inspections I ordered, it became clear that Fondomonte has been operating in default of their lease since 2016. Im taking action where my predecessor wouldnt and holding Fondomonte accountable. Its unacceptable that they have continued to pump unchecked amounts of groundwater out of our state while in clear default on their lease, Hobbs, a Democrat, posted on X, formerly Twitter.
My administration has taken swift action to hold defaulting, high-volume water users accountable. And moving forward, I will continue to do everything in my power to protect Arizonas water so we can sustainably grow for generations to come, Hobbs said.
Fondomonte Arizona is a subsidiary of Saudi dairy firm Almarai Co., which grows water-intensive alfalfa crops in Arizona to provide feed for livestock in Saudi Arabia. The crop is so water-intensive, it is reportedly illegal to grow it in Saudi Arabia, most of which is desert.
Years of worsening drought conditions in Arizona have prompted increasing criticism of Fondomonte and other foreign-owned farms pumping excessive groundwater at little to no cost.
Per reports, Fondomonte was first notified of lease violations in 2016, but an August inspection revealed the issues, including the company’s storage of hazardous materials, were still unresolved, providing grounds to terminate the lease. According to the governor’s office, the three other leases will not be renewed due to excessive amounts of water being pumped from the land — free of charge.
Arizona Attorney General Kris Mayes, whose office was involved in the inspections, praised the decision on Monday, calling it a good step in the right direction.
While today’s announcement is commendable, it should have been taken by state government much earlier, Mayes said.
It has been long evident to Arizonans across our state that these leases never should have been signed in the first place, Mayes said. The decision by the prior administration to allow foreign corporations to stick straws in the ground and pump unlimited amounts of groundwater to export alfalfa is scandalous.
TMX contributed to this article.