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Saudi Firm to Blame for Pumping Water in Drought-Stricken Arizona

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Nicholas Vincent is a passionate environmentalist and freelance writer. He is deeply committed to promoting... Read More

Low water level of Lake Mead

Amidst a prolonged drought, a Saudi-owned company, Fondomonte Arizona, has been pumping water from deep underground in Arizona’s Butler Valley to cultivate alfalfa hay for export to Saudi Arabia. This arrangement, allowed by the state of Arizona for nearly a decade, has come under scrutiny due to concerns about water scarcity and the lack of transparency surrounding the company’s water usage.

Source: CBS Mornings/YouTube

The state of Arizona had leased the desert land to Fondomonte, granting the company unlimited access to water for its alfalfa crops. However, for years, there were no regulations in place to monitor the amount of water being used. State planners had initially proposed installing meters and requiring water use reporting from Fondomonte, but the suggestion was rejected by officials cautious about challenging the powerful company and influenced by the belief that water is private property rather than a public resource.

Arizona’s lax regulatory environment, coupled with Fondomonte’s lobbying efforts and connections, allowed the company to freely access and consume a scarce American resource. The Saudi-owned farm’s operations have relied on the water-intensive cultivation of alfalfa, a crop that is banned in Saudi Arabia due to the country’s limited water supply. Fondomonte employed influential Republican lawyers and former members of Congress to advocate for its interests and gain Support from the local community.

As the scarcity of water in Arizona reaches critical levels, state officials are beginning to realize the impact of unregulated farming and unchecked water consumption. A study conducted by the new governor, Democrat Katie Hobbs, revealed that groundwater in certain areas would be insufficient to meet future demand. In response, the governor’s administration has demanded greater transparency regarding water usage on state-owned land. Only after facing the threat of lease cancellation did Fondomonte disclose its annual water consumption, which is equivalent to that of a city with over 50,000 residents.

The governor’s aides are recommending against renewing Fondomonte’s leases in the Butler Valley when they expire next year, a decision that could potentially lead to a confrontation with the company. The outcome of this dispute will have significant implications not only for foreign companies seeking access to American natural resources but also for the future of agriculture in the face of intensifying droughts and competing demands for water resources.

Fondomonte’s presence in Arizona has divided the local community. Some residents express concerns about foreign companies depleting local water supplies, while others, including cattle ranchers, worry about water being diverted to urban areas instead of supporting local agriculture. The controversy surrounding Fondomonte highlights the complex issues surrounding water rights, water management, and the delicate balance between rural and urban water needs.

Arizona’s experience with Fondomonte serves as a cautionary tale, highlighting the importance of sustainable water management practices and the need for robust regulations to ensure the equitable distribution and preservation of water resources. As climate change continues to exacerbate water scarcity, proactive measures and responsible stewardship of water will be crucial to mitigate conflicts and ensure the long-term sustainability of communities and ecosystems.

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