As Arizona struggles to adapt to a water shortage that has dried out farms and scuttled development plans, one company has emerged as a central villain. The agricultural company Fondomonte, which is owned by a Saudi Arabian conglomerate, has attracted tremendous criticism over the past several years for sucking up the state’s groundwater to grow alfalfa and then exporting that alfalfa to feed cows overseas.
Governor Katie Hobbs responded to those calls for action on Monday when she canceled one of Fondomonte’s four leases in the state’s rural Butler Valley and pledged not to renew the other leases when they expire next year. Hobbs, a Democrat who took office earlier this year, said in a statement about the decision that the company “was operating in clear default” of its lease and had violated state laws around hazardous waste. She also pledged to “hold defaulting, high-volume water users accountable” and “protect Arizona’s water so we can sustainably grow for generations to come.”
