A Saudi Arabian farm has stopped pumping Arizona groundwater after previously having unlimited access to the state’s dwindling groundwater supply.
An inspection from Gov. Katie Hobbs (D-AZ) and the Arizona State Land Department found that the company, Fondomonte Arizona, had stopped pumping water in Butler Valley, near the Colorado River. Hobbs took responsibility for the move.
“Today is the start of a new chapter for Arizona’s water future,” Hobbs said in a statement. “I’m not afraid to hold people accountable, maximize value for the state land trust, and protect Arizona’s water security.”
In October 2023, Hobbs ended the lease with the Saudi Arabian company that grew alfalfa and then shipped the hay back to the Middle East. Under the lease, Fondomonte was given 3,500 acres for $25 per acre. Fondomonte was allowed to pump unlimited groundwater for no additional cost.
“I’m proud my administration has taken swift action to hold defaulting high-volume water users accountable and bring an end to these leases,” Hobbs said at the time. “And moving forward, I will continue to do everything in my power to protect Arizona’s water so we can continue to sustainably grow for generations to come.”
The state estimated that Fondomonte pumped 5.3 billion gallons on the farm in 2022. In comparison, the state estimates that 325,000 gallons of water is enough to supply three Phoenix homes per year.
“Fondomonte is adhering to all the conditions of the lease, and thus we have done everything required of us under these conditions,” a company spokesperson said in a statement in response to the governor’s move to terminate the lease.
The company appealed the cancellation of the lease but was notified that regardless of the appeal, the leases that expired in February would not be renewed. Fondomonte had four separate leases in the region and three of the four expired in February. The remaining lease was canceled “due to an uncured default.”
Fondomonte was not the only foreign farm in the southwestern state. Al Dahra, a United Arab Emirates-based company farming alfalfa, had lease deals in rural parts of the state. When Hobbs and Attorney General Kris Mayes took office in January 2023, they vowed to crack down on foreign farms.
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“I am never going to stop until these leases are canceled or not renewed,” Mayes told CNN. “It would be unconscionable, I believe, for the state of Arizona to renew that lease with the Saudis.”
The leases between the state and Fondomonte, put in place by former Republican Gov. Doug Ducey, were originally faced with controversy as the state deals with looming water supply problems. The Colorado River, shared between Arizona, California, Colorado, Nevada, and Utah, is dwindling in levels. Investigations from the state and federal agencies found many of Arizona’s groundwater wells were severely overpumped.