Water-guzzling alfalfa farms pose a growing threat to Arizona's future as water resources dwindle.
, 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.
“I think the governor was looking for a reason to cancel these leases,” said Kathleen Ferris, a senior research fellow at Arizona State University’s Kyl Center for Water Policy and an architect of the state’s landmark 1980 groundwater law. “But the bigger problem is unregulated use of groundwater in rural areas of the state. That’s the big elephant in the room — we are just not addressing this use of groundwater, and it’s finite.
“Our concern is that one of the things that the governor mentioned in her press release was the idea that the water use was one of the determining factors in canceling those leases,” said Philip Bashaw, the CEO of the Arizona Farm Bureau, which advocates for the state’s farmers. “We are concerned about the precedent this might set for other agricultural leases on state land.
The reason for this is simple: Alfalfa is a lucrative business. The hay product fetched about $320 per ton in 2022, up from $210 the year before, making it more lucrative than other large-scale crops like wheat. It provides nutritious and healthy feed for cattle and dairy cows, which means there’s significant demand for it both in the United States and overseas in places like Saudi Arabia.
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