Fondomonte Arizona is withdrawing from the Butler Valley groundwater basin in La Paz County, and its development has state and local officials expressing optimism about the future of Arizona's groundwater.
Groundwater conservation is a major issue in Mojave and La Paz counties as drought conditions continue across the Southwest for the first time in 20 years. On Thursday, Gov. Katie Hobbs announced that Fondomonte, a subsidiary of Saudi-based Almarai, has stopped pumping from the Butler Valley groundwater basin starting this week.
Hobbs said the company's decision stemmed from the Arizona Land Department's refusal in October to not renew three leases by Fond Monte to pump water from the Butler Basin. , said that this was due to the cancellation of the fourth lease contract effective February 14th.
“Today marks the beginning of a new chapter for Arizona's water future,” Hobbs said in a news release Thursday. “I'm not afraid to hold people accountable, maximize the value of our national land trusts, and protect Arizona's water security.”
As of this week, Fondomonte continues to operate in other parts of Arizona, growing alfalfa and other crops for export to the Middle East. But in Thursday's announcement, Hobbs signaled the beginning of future efforts to keep the state's groundwater safe.
“We are proud to offer this not only to the La Paz County community, but to the entire state of Arizona. We will continue to take decisive action to protect Arizona’s waters so we can thrive for decades to come.” “We will continue to do so,” Hobbs said.
As Fondomonte withdraws from the Butler Groundwater Basin in the Bowes area, other agricultural companies may also be on alert this year, thanks to the efforts of the governor and the state Lands Department.
Mohave County has seen firsthand the impact of outside agricultural interests, including agricultural interests from California-based industries as well as foreign companies.
Mohave County had no large-scale agricultural operations until 2014, county officials said earlier this year. However, with the entry of California-based companies and UAE-based Al Dahra, agriculture now accounts for about 70%. Total water use for Mohave County.
Mohave County Supervisor Travis Lingenfelter expressed optimism about the governor's announcement this week.
“Mr. Hobbs is far more aggressive on local groundwater issues than any governor I've ever seen,” Lingenfelter said Friday. “We have an attorney general who is also proactive on this issue. At the state level, we are seeing conversations and actions to address this issue. Our advocacy efforts are bearing fruit…consumers From a conservation perspective, this is a good thing.”
Lingenfelter expressed hope that state Republicans will take an active role in Congress to further protect Arizona's groundwater supplies.
In Washington, D.C., an Arizona Democratic lawmaker has already proposed a bill that could restrict agricultural water use by foreign companies in Arizona.
In September, the Home Water Protection Act of 2023 was introduced in the House of Representatives by U.S. Representative Ruben Gallego (AZ-3). Under the bill, Congress would create a 300% excise tax on sales and exports of water-intensive crops by foreign companies and governments in areas of the United States experiencing prolonged drought.
The bill would create a Drought Trust Fund that would use the proceeds to fund drought response and recovery efforts throughout the Southwest.
The Home Water Protection Act, also known as HR 5325, was referred to the House Ways and Means Committee and the Natural Resources Committee in September. As of this week, no further action has been taken on the bill.
