AZ Gov. Katie Hobbs Terminates Saudi Arabia’s Water Leases
By Nikki Slusher
On October 3, 2023, Arizona’s Democratic Governor Katie Hobbs announced that she was terminating the state’s water leases with Fondomonte Arizona, a Saudi-owned alfalfa farm. The move was a historic one, as it was the first time that a US state had ever terminated a water lease with a foreign country.
Hobbs’ decision was motivated by a number of factors, including the state’s ongoing drought, concerns about water security, and the fact that Fondomonte had been in violation of its lease agreements for several years.
The alfalfa that Fondomonte grows is a notoriously water-intensive crop, and the company has been pumping massive amounts of groundwater from Arizona’s aquifers. This has raised concerns among water experts and environmentalists, who worry that the state’s water resources are being depleted at an unsustainable rate.
In addition, Fondomonte has been cited for a number of violations of its lease agreements, including failing to maintain its irrigation equipment and failing to pay rent on time.
Hobbs’ decision to terminate Fondomonte’s leases was met with praise from many Arizonans, who were concerned about the environmental and economic impacts of the farm. However, some critics accused Hobbs of being anti-business and of driving away foreign investment.
Despite the criticism, Hobbs has defended her decision, saying that it was necessary to protect Arizona’s water resources and to hold foreign companies accountable. She has also said that she is committed to working with Arizona farmers to develop sustainable water practices.
The termination of Fondomonte’s water leases is a significant step forward for Arizona in its efforts to protect its water resources and to ensure a sustainable future for the state. It is also a reminder that the US has a responsibility to manage its water resources wisely, especially in the face of climate change and other challenges.
Hobbs’ decision to terminate Fondomonte’s water leases has a number of implications for Arizona and for the US as a whole.
First, it is a sign that Arizona is serious about protecting its water resources. The state is facing a number of water challenges, including drought, climate change, and population growth. Hobbs’ decision is a signal that the state is committed to managing its water resources wisely.
Second, Hobbs’ decision could have a ripple effect on other states. Other states with water challenges may be inspired to follow Arizona’s lead and take steps to protect their own water resources. Currently Saudi companies lease vast quantities of land along the Colorado River basin where groundwater is used to grow alfalfa hay for Saudi Arabia’s cattle ranches.
Third, Hobbs’ decision could send a message to foreign investors that the US is not willing to sacrifice its water resources for the sake of economic development. This could make it more difficult for foreign companies to obtain water leases in other states.
Overall, Hobbs’ decision is a significant development that could have a major impact on Arizona and on the US as a whole. It is a reminder that the US has a responsibility to manage its water resources wisely, especially in the face of climate change and other challenges.
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