(NewsNation) — A Saudi-owned dairy company with farmland in rural Arizona has sparked local tension over its use of the region’s groundwater amid a worsening drought.
For nearly a decade, Fondomonte Arizona, a subsidiary of Saudi Arabia-based Almarai Co., has been growing alfalfa — one of the most water-intensive crops — for livestock in the Gulf kingdom on land it purchased in La Paz County.
But now, the property has become a flashpoint for residents and local officials who are questioning why foreign companies are allowed to take advantage of loopholes in the state’s groundwater laws.
Those laws have allowed the company to draw an unlimited amount of groundwater from wells it operates in the area even as water is becoming a scarce resource across the region.
Last month, the state of Arizona rescinded drilling permits for two additional water wells for the company after authorities discovered inconsistencies in Fondomonte’s well applications. The two new wells would have pumped in just three minutes what a family of four uses in a month, the Associated Press determined.
“We just can’t — in the midst of an epic drought — afford to do dumb things with water in the state of Arizona anymore,” Attorney General Kris Mayes told The Associated Press.
The AG said she thought most Arizonans find it “outrageous” that the state is allowing foreign-owned companies to “use our water for free to grow alfalfa and send it home to Saudi Arabia.”
The situation in the American Southwest is just the latest example of local pushback against foreign entities on U.S. farmland.
In recent months, residents in North Dakota and Michigan have spoken out against plans to bring Chinese-owned companies to their communities.
Foreign entities and individuals control roughly 40 million acres, or 3% of U.S. farmland, according to the U.S. Department of Agriculture. Although, the majority of that land is owned by longtime allies.
Canadian investors hold the most U.S. land, with more than 12.8 million acres of agricultural and nonagricultural land. Investors from the Netherlands, Italy, Germany and the United Kingdom collectively hold 12.4 million acres — about 31% of foreign-held acres in the U.S.
China currently holds 384,000 acres of land in the U.S., which is around 1% of all foreign-held acres. The total holdings for Saudi Arabian investors is about 36,000 acres.
Despite its relatively small portion of the overall pie, China’s foreign investment in agriculture abroad has increased rapidly in recent years. The trend has led some lawmakers on Capitol Hill to raise national security concerns.
Sen. Mike Rounds, R-S.D., and Sen. John Tester, D-Mont., have introduced legislationto prevent foreign adversaries from buying American farmland. At least 11 state legislatures are considering similar laws.
Arizona is canceling leases that allow Saudi-owned farm unlimited access to state's groundwater. Arizona Gov. Katie Hobbs said this week her administration is terminating state land leases that for years have given a Saudi-owned farm nearly unfettered access to pump groundwater in the dry southwestern state.
The Arizona governor's office said the State Land Department decided not to renew the leases the company had in Butler Valley due to the "excessive amounts of water being pumped from the land — free of charge." Fondomonte appealed the cancelation, and that process is still pending. The last lease ended on Feb. 14.
Arizona communities sink after Saudi Arabia pumps water out of the state: 'It's horrific' Arizona took steps to rectify the overuse of water in October, but it is reportedly still dealing with the fallout after years' worth of groundwater drilling.
Fondomonte and Almarai grow alfalfa in Arizona, cut it, bale it and truck it to port. Then it's shipped back to Saudi Arabia to feed dairy cows. LA PAZ COUNTY, Ariz. — The overseas company sucking water out of the Arizona ground will no longer be able to do so, according to an announcement from Gov.
“The waters of all sources, flowing in streams, canyons, ravines or other natural channels, or in definite underground channels, whether perennial or intermittent, flood, waste or surplus water, and of lakes, ponds and springs on the surface, belong to the public and are subject to appropriation and beneficial use..... ...
Some say this is because it is illegal to deny someone water in Arizona. A listener asked if this law really exists, and KJZZ's Q&AZ reporting project found the answer. The origins of a law in Arizona making it illegal to deny someone water are unknown. Despite being repeated for decades, there is no such law.
Billionaire T.Boone Pickens owned more water rights than any other individuals in America, with rights over enough of the Ogallala Aquifer to drain approximately 200,000 acre-feet (or 65 billion gallons of water) a year.
Migrants were subjected to serious human rights abuses, including killings at the border with Yemen and treatment that may amount to human trafficking for the purpose of labour exploitation. Thousands of people were involuntarily returned to their home country as part of a nationwide crackdown on undocumented migrants.
Nearly 2.25 million km2 of the Kingdom (KSA) are arid, so is a water-scarce nation with limited freshwater resources as have no perennial rivers or other ongoing bodies of water. Saudi Arab is among the driest contents in the globe due to its minimal rainfall with maximum evaporation rates.
Where Central Arizona's water comes from. Central Arizona's water supply comes from three main sources — the Colorado River, the Salt and Verde River systems, and groundwater.
RIO VERDE FOOTHILLS, Ariz. (CBS, KYMA/KECY) - It's a story that's making national headlines. On January 1, 2023, about 1,000 people who live in the Rio Verde Foothills had their water supply cut off by the City of Scottsdale.
The Almarai Company owns about 10,000 acres of farmland in Arizona under its subsidiary, Fondomonte. It also owns about 3,500 acres in agriculture-heavy Southern California, according to public land records, where they use Colorado River water to irrigate crops.
In theory, tap water in Saudi Arabia is safe to drink. According to World Health Organization (WHO) data, 99% of Saudi cities, towns, and rural areas have access to improved clean water sources available when needed.
Arizona to cancel leases allowing Saudi-owned farm access to state's groundwater. WASHINGTON (AP) — Arizona governor Katie Hobbs said this week her administration is terminating state land leases that for years have given a Saudi-owned farm nearly unfettered access to pump groundwater in the dry southwestern state.
The Arizona Corporation Commission maintains regulatory authority over private water companies and private wastewater companies throughout Arizona. There are presently more than 400 individual water systems operated by nearly 350 companies under our jurisdiction.
All water matters are handled by the Ministry of Water and Electricity. Aquifers are a major source of water in Saudi Arabia. They are vast underground reservoirs of water. In the 1970s, the government undertook a major effort to locate and map such aquifers and estimate their capacity.
The five categories of water rights recognized in Arizona are groundwater, surface water, Colorado River water, effluent, and reserved groundwater rights.
The Phoenix Water Services Department, serving about 1.2 million people, is the largest water provider in the state. When aggregated across their individual systems, privately owned Arizona-American Water Company and Arizona Water Company are the seventh and eighth largest privately owned water companies in the state.
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