In a recent announcement, Arizona governor Katie Hobbs declared that her administration will be terminating state land leases that have granted a Saudi-owned farm unrestricted access to pump groundwater in the arid southwestern region.
Hobbs, a member of the Democratic party, revealed on Monday that Fondomonte Arizona’s lease in Butler Valley, located in western Arizona, has been cancelled, and three other leases up for renewal in the same area will not be renewed next year.
A thorough investigation conducted by the governor’s office revealed that the foreign-owned farm had violated several terms of its lease agreement.
Expressing her discontent, Hobbs deemed it unacceptable that the farm had been extracting excessive amounts of groundwater from the state while clearly defaulting on their lease obligations.
Fondomonte Arizona, a subsidiary of the renowned Saudi dairy conglomerate Almarai Co., has established itself as a key player in the agricultural sector by cultivating alfalfa in the arid region of Arizona.
This strategic move aims to address the pressing issue of water scarcity in the Gulf kingdom, where livestock heavily rely on imported feed.
By growing alfalfa locally, Fondomonte Arizona not only ensures a consistent supply of high-quality feed but also significantly reduces the environmental impact associated with long-distance transportation.
This forward-thinking approach exemplifies Almarai’s commitment to sustainable practices and its dedication to meeting the nutritional needs of the livestock industry while mitigating the challenges posed by water scarcity.
With its expertise in the dairy industry and its investment in innovative farming techniques, Fondomonte Arizona has successfully positioned itself as a key contributor to the agricultural sector in the Gulf kingdom, fostering food security and sustainable development.
In response to the governor’s decision to terminate its 640-acre lease in Butler Valley, Fondomonte has expressed its intention to appeal the ruling through a spokesperson.
Fondomonte, a company that operates in the rugged desert area west of Phoenix, had been cultivating approximately 3,500 acres of land.
However, it had previously attracted attention in 2014 when it acquired nearly 10,000 acres of land in Vicksburg, Arizona, for $47.5 million, located about 20 miles away from Butler Valley.
The ongoing drought in Arizona has brought increased scrutiny to Fondomonte’s water usage and the broader concerns surrounding foreign-owned farms and groundwater extraction.
The governor’s office has cited various violations, including the improper storage of hazardous materials, among other issues.
On Monday, Hobbs’ office revealed that Fondomonte had been notified of these violations in 2016. However, an investigation conducted in August found that the company had failed to rectify the problems even after seven years.
Consequently, Arizona’s State Land Department found sufficient grounds to terminate Fondomonte’s lease.
This development highlights the importance of adhering to environmental regulations and underscores the need for responsible management of natural resources, particularly in arid regions like Arizona.
The Arizona governor’s office recently made the announcement that the State Land Department has chosen not to renew three leases held by Fondomonte, a foreign company, in Butler Valley.
This decision was made due to concerns over the excessive amounts of water being pumped from the land without charge.
The State Land Department is responsible for managing land owned by Arizona, and in the case of Fondomonte, the land had been leased to the company.
The groundwater in Butler Valley holds significant importance, as it can legally be pumped and transported to other areas according to state law.
This has made it a valuable resource for cities like Phoenix, which are grappling with water supply-related stress and a rapidly growing population.
In Arizona, cities such as Phoenix and Tucson are subject to restrictions on the amount of groundwater they can pump, as mandated by a state law implemented in 1980.
The purpose of this law is to safeguard the state’s aquifers. However, in rural areas, there are fewer regulations in place for water users who extract water from underground aquifers.
The only requirements are to register wells with the state and utilize the water for activities deemed “beneficial use,” such as farming.
Fondomonte also operates farms in the Palo Verde Valley of Southern California, where water is sourced from the diminishing Colorado River.
Surprisingly, these operations have attracted less scrutiny compared to their activities in Arizona. It is worth noting that not all of Fondomonte’s farms in Arizona are affected by the governor’s decision.
Additionally, Fondomonte is not the only foreign company engaged in farming in the Southwest region. Al Dahra ACX Global Inc., which is owned by the United Arab Emirates, cultivates forage crops in both Arizona and California and is a significant exporter of hay in North America.
Almarai, a prominent Saudi Arabian company, has established a significant presence in the Southwest region, where it holds substantial farmland.
This is just one instance of the extensive agricultural operations that Almarai and its subsidiaries oversee beyond the borders of Saudi Arabia. In particular, the company cultivates tens of thousands of acres in Argentina, a country that has been grappling with severe drought conditions in recent years.
Almarai’s ventures in this region not only highlight the company’s commitment to expanding its agricultural activities beyond its home country but also underscore its ability to adapt and thrive in challenging environmental circumstances.
By strategically diversifying its farmland holdings, Almarai ensures a steady supply of resources and maintains its position as a leading player in the global agricultural industry.
According to the U.S. Department of Agriculture, approximately 3% of U.S. farmland is under the control of foreign entities and individuals.
This statistic sheds light on the complex dynamics of land ownership within the United States, highlighting the presence of international actors in the agricultural sector. Among these foreign entities, Canada emerges as the largest holder, predominantly in terms of forestland.
This revelation prompts a deeper examination of the factors driving foreign investment in U.S. farmland, as well as the potential ramifications for domestic agriculture and the broader economy.
The significance of this phenomenon cannot be understated, as it raises questions about the balance between national sovereignty and global economic integration, as well as the implications for food security and land use policies.
Kris Mayes, the esteemed Democratic attorney general of Arizona, has expressed his utmost admiration and support for the governor’s commendable efforts in effectively addressing the issue of the foreign-owned farm.
This significant step taken by the governor is a testament to his unwavering commitment towards upholding the interests and welfare of the state’s agricultural sector.
Mayes, with his extensive knowledge and expertise in legal matters, recognizes the importance of such measures in safeguarding the economic stability and sustainability of Arizona’s farming industry.
By cracking down on the foreign-owned farm, the governor has displayed a remarkable display of leadership, demonstrating his dedication towards ensuring that the state’s resources are utilized in the most beneficial and responsible manner.
Mayes’ commendation of the governor’s actions underscores the collaborative spirit and unity among Arizona’s political leaders in striving towards a prosperous and thriving agricultural landscape.
In April, it was announced by Mayes that the state had taken the decision to rescind permits that would have granted Fondomonte the authority to drill new water wells.
This decision was made after inconsistencies were identified in the company’s applications. Moreover, on Monday, Mayes expressed his support for the governor’s actions, deeming them as a positive “step in the right direction.”
Additionally, he emphasized that the state should have taken action sooner in addressing the issue at hand.
This acknowledgement highlights the significance of prompt intervention and underscores the importance of ensuring that regulatory processes are thorough and consistent.
By rescinding the permits, the state has demonstrated its commitment to upholding rigorous standards and safeguarding the integrity of its natural resources.
The statement made by Mayes regarding the decision made by the previous administration to permit foreign corporations to extract groundwater for the purpose of exporting alfalfa is indeed scandalous.
This particular action raises significant concerns and warrants a closer examination of the potential consequences it may have on both the environment and local communities.
Allowing foreign entities to exploit groundwater resources without any restrictions or limitations not only poses a threat to the sustainability of these vital water sources but also undermines the rights and interests of domestic stakeholders.
Such a decision demonstrates a lack of foresight and responsibility on the part of the prior administration, as it prioritizes short-term economic gains over the long-term well-being of the nation and its citizens.
It is imperative that this scandalous decision be thoroughly reviewed and rectified to ensure the protection and preservation of our precious groundwater resources for future generations.