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A Saudi business is leaving Arizona valley after it was targeted by the state over groundwater use

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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.'

PHOENIX — Arizona officials said a Saudi-owned company they targeted over its use of groundwater to grow forage crops is moving its farming operation out of a valley in the Southwestern state’s rural west.Gov. Katie Hobbs and the Arizona State Land Department announced late Thursday that Fondomonte Arizona is officially no longer pumping water in the Butler Valley groundwater basin. Some residents of La Paz County had complained that the company’s pumping was threatening their wells.

American farmers commonly export forage crops to countries including Saudi Arabia and China.Fondomonte, a subsidiary of Saudi dairy giant Almarai Co., held four separate lease agreements in the Butler Valley Basin to grow alfalfa that feeds livestock in the Gulf kingdom. In October, Arizona’s State Land Department notified Fondomonte that three of its four leases in the Butler Valley Basin would not be renewed.

 

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