Arizona ends land lease, water rights for Saudi-owned farm

PHOENIX (3TV/CBS 5) - Arizona Governor Katie Hobbs moved on Monday to end the state’s controversial land lease with a Saudi farming company that grows alfalfa in the desert west of Phoenix and ships the hay to the Middle East.

The company, Fondomonte Arizona, leased 3500 acres of land for $25 per acre. Under existing state law, the company was allowed to pump as much groundwater as it needed for no additional cost. According to state records, Fondomonte used 5.3 billion gallons of water last year.

Records show that retired state employees are making money from it.

“It’s unacceptable that Fondomonte has continued to pump unchecked amounts of groundwater out of our state while in clear default on their lease. I’m proud my administration has taken swift action to hold defaulting high-volume water users accountable and bring an end to these leases. 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,” said Governor Katie Hobbs in a news release.

Hobbs accused Fondomonte of violating the terms of its lease with the state. Hobbs terminated one lease and indicated the state would not renew three additional leases with the company when those leases expire in February.

Fondomonte responded with the following statement:

“While Fondomonte is reviewing the notifications received from Gov. Hobbs and the Arizona State Land Department, we believe the state is mistaken that the company is in breach of its lease. Fondomonte will work with the governor’s office to highlight these factual errors. Fondomonte is adhering to all the conditions of the lease, and thus we have done everything required of us under these conditions. As for the other leases the state intends to not renew, this would set a dangerous precedent for all farmers on state land leases, including being extremely costly to the state and Arizona taxpayers. Fondomonte will explore all avenues to ensure there is no discrimination or unfair treatment. We have been in discussions with the Governor’s office and we will continue to work with Gov. Hobbs and the state to resolve groundwater matters and misinformation.”
Fondomonte

Federal lawmakers are proposing to make it more expensive for overseas companies to grow crops using Arizona land and water.

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