Farms in western Arizona grow alfalfa, one of the most water-intensive crops in a water-stressed area. Some farms are foreign-owned and ship their crops to Saudi Arabia, where it is illegal to grow because it consumes so much water.
Potential consideration of scarce water supplies is a growing controversy. Amid the backlash, state legislatures are considering banning most foreign-owned farms.
“The pumps are pumping water from ground that belongs to Arizona and is essentially being exported to Saudi Arabia,” said Chris Mays, Arizona’s newly elected Attorney General.
Fondomonte, owned by one of Saudi Arabia’s largest dairy companies, has purchased a vast desert area above a huge groundwater aquifer in western Arizona. One reason is that there are no regulations on how much water can be pumped out of the ground. If you buy or rent land there, anyone can dig a well and draw water.
A challenge to the nation. Arizona and its rapidly growing cities are facing a drastic reduction in surface water supplies from the very low Colorado River system as climate change causes devastating droughts.
“Frankly, we cannot afford to give our water to anyone, let alone Saudis, for free,” Mayes said.
Since the foreign-owned farm began operations in 2015, La Paz County superintendent Holly Irwin said Fondmonte is growing alfalfa in the Arizona desert because “natural resources are depleted. Because I did,’ he said.
Fondmonte trucks haul dry alfalfa off the land they use and send it back to the Middle East to be fed to cattle. According to Mayes, cows in Saudi Arabia basically drink water from Arizona.
Fondmonte declined CBS News’ request for an interview or statement. In fact, the state rents land in Fondmonte at $25 per acre. The company will then be able to pump an unlimited amount of groundwater, essentially free of charge.
“I have nothing to say except that it’s insane,” Mays said.
For some, the question is: how did this happen?
CBS News has acquired copies of several land leases dating back to 2014 that give Fondmonte rights to more than 6,000 acres of state land and associated groundwater. The lease is signed by the Arizona Land Department.
CBS News asked the department why it allowed the lease, but did not respond to repeated requests for comment. Most state officials who were in charge when the lease was signed are no longer in office.
“It’s a scandal that Arizona allowed this,” said Mays, a Democrat.
She said the cancellation of the lease was an urgent concern because the valley’s groundwater is supposed to be the state’s emergency water supply during a water crisis. I’m not sure exactly what you’re using.
“We are on the verge of a possible water disaster in Arizona,” Mays said.
Just outside a western Arizona town called Hope, rancher Brad Mead finds it hard to lose him. He claims the well dried up because his neighbor, Fondmonte, used too much water.
He said he sees money leaving America when he looks at his neighbor’s property.
“I can see the water running out,” he said.
Ben Tracy
Ben Tracy is a national and environmental correspondent for CBS News based in Washington, DC.