Saudi Arabian company Fondomonte has come under fire recently for using large amounts of water in Arizona for its alfalfa farms, obtained through a very inexpensive land lease. Despite the outraged responses, a lobbying firm connected to Democratic Governor Katie Hobbs signed a contract representing the company two months ago — which suddenly ended, likely due to the negative publicity. Hobbs has a mixed record on allowing Fontomonte to continue draining Arizona’s water.
Kari Lake tweeted on July 27, “A Saudi Arabian company has been exporting Arizona water overseas despite our historic drought. They just hired the business partner of @katiehobbs’ TOP campaign adviser to lobby for them. This is corruption in broad daylight. Hobbs is selling Arizona out to the highest bidder. And I will fight like hell to stop her.”
A Saudi Arabian company has been exporting Arizona water overseas despite our historic drought.
They just hired the business partner of @katiehobbs’ TOP campaign adviser to lobby for them.
This is corruption in broad daylight.
Hobbs is selling Arizona out to the highest…
— Kari Lake (@KariLake) July 27, 2023
The Kari Lake War Room account added, “It’s a corrupt bargain. Hiring Hobbs loyalists to look the other way while they export our precious resources during a HISTORIC drought. Frankly, it’s impeachable.”
Arizona is currently undergoing a megadrought, experiencing two consecutive years of federal water cuts from the Colorado River, a primary water source. While Fondomonte, a subsidiary of Almarai Co., has been drilling water for its alfalfa farms without limits, some Arizona residents in Rio Verde have seen their water cut off, and other Arizonans were told to cut back on consumption. The Scottsdale City Council recently voted to ban natural grass in future single-family homes.
A user named Boomer Jan on Twitter observed, “Meanwhile Phoenix is proposing a 43% water rate increase on residents. Residents! Not corporations, foreign or domestic.”
Due to the amount of water it uses, alfalfa hay has been dubbed “the thirstiest crop in the Southwest.” Experts calculated that Fondomonte consumes enough water annually to support a city of more than 50,000 people.
Two months ago, Fondomonte hired Chaz Guzman and his lobbying firm Signal Peak Consulting, of which he is the sole member. Guzman co-manages a lobbying firm called Fillmore Strategy with Hobbs’ senior advisor to her campaign, Joe Wolf. Both lobbying firms list the same address. Guzman registered with the state on Wednesday as a lobbyist for the company, but on Friday state lobbying records showed the relationship terminated. According to The Arizona Republic, Guzman said he was “no longer representing Fondomonte, but wish them the best.”
The Republic also said Wolf indicated he is no longer being paid by Hobbs’ campaign. After Hobbs became governor, Wolf continued to speak to the media on her behalf. Matthew Benson, a spokesperson for Fondomonte, told The Republic that Guzman hired Fondomonte two months ago. Benson also quit working for the company on Friday, according to The Republic, adding, “but wish them well.” Guzman was a lobbyist for Arizona Public Service (APS). APS was the largest donor to Hobbs’ inaugural festivities. Hobbs vetoed a bill in April that would have provided more energy choices.
Fondomonte’s land lease for state trust land in Butler Valley, located in La Paz County, is $25/acre for 3,500 acres, considered “well below market rates” according to Attorney General Kris Mayes. The company grew alfalfa hay to ship back to Saudi Arabia to feed cows. Growing alfalfa hay is illegal there due to the vast amount of water it consumes. There are no requirements for Fondomonte to report how much water it pumps.
Charlie Havranek, a Realtor at Southwest Land Associates, told Arizona PBS that the $25 per acre price is only about one-sixth of the market price for unimproved farmland with flood irrigation today.
According to Holly Irwin, a member of the La Paz County Board of Supervisors, residents have complained to her for years that it’s getting harder to pump water in nearby wells.
In April, the Arizona Department of Water Resources (ADWR) revoked permits for two well-drilling permits it issued to Fondomonte in August of last year. The two wells would have been capable of pumping 3,000 gallons of water per minute. Mayes claimed credit for strong-arming ADWR into the move, however at the same time, Hobbs’ office claimed credit.
Hobbs denounced the leases originally while campaigning and then during her State of the State speech. But not all of the wells have been addressed. According to The Arizona Capitol Times, Fondomonte owns 32 drilling permits, with some wells drilled as recently as 2021.
In May, apparently in response to the ongoing controversy, the Arizona State Land Department paused all renewals and new applications to lease state-owned land in groundwater transportation basins.
Lawmakers proposed legislation this year attempting to stop Fondomonte from conducting its operations in the state. State Representative Leo Biasiucci (R-Lake Havasu) sponsored HB 2376, which would prohibit problematic foreign countries from buying or leasing Arizona land. The bill passed the House with mostly Republican support, but stalled in the Senate.
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Rachel Alexander is a reporter at The Arizona Sun Times and The Star News Network. Follow Rachel on Twitter. Email tips to [email protected].
Photo “Alfalfa Farm” by Navajo Agricultural Products Industry CC4.0.
