Arizona Sues Saudi-Owned Farm for Depleting Desert Groundwater

The Arizona Attorney General's Office has filed a public nuisance lawsuit against Fondomonte, a Saudi-owned agricultural company, alleging that its massive hay farming operation in the Arizona desert is depleting the region's already scarce groundwater supply.

The lawsuit, announced by Attorney General Kris Mayes on Wednesday, seeks to halt Fondomonte's excessive groundwater pumping and compel the company to establish an abatement fund. This fund would cover damages incurred by neighboring landowners, such as dried-up wells and deteriorating water quality, as a result of the depleted groundwater levels.

Mayes stated in a press release, "Arizona law is clear: No company has the right to endanger an entire community’s health and safety for its own gain."

Fondomonte operates in La Paz County, where it pumps billions of gallons of groundwater annually to irrigate alfalfa fields. The hay is then exported to Saudi Arabia to feed dairy cows. The operation first gained public attention in a 2015 investigation by the Center for Investigative Reporting (CIR), which later produced a documentary titled "The Grab," examining global water and food conflicts.

Initially, the Arizona Department of Water Resources Director Tom Buschatzke dismissed CIR's findings, asserting that sufficient water supply existed for at least the next century. However, residents soon reported wells running dry. For instance, the well at Friendship Baptist Church, located adjacent to the farm, went dry in 2017, forcing the church to truck in bottled water for baptisms and other events.

Rancher John Weisser and trailer park resident Wayne Wade also reported their wells drying up, with Wade stating, "The water level went below my pump, and the pump burned up and melted the casing. I think everybody knows the problem, but I don’t know how to correct it. I can’t pay for a high-powered lawyer. Neither can any of my friends."

La Paz County Supervisor Holly Irwin, who has advocated for action since the farm's operations became known nearly a decade ago, welcomed the lawsuit. "I feel that La Paz County finally has someone fighting for us," she said. "My constituents are experiencing real damages from massive groundwater pumping."

Mayes, elected in 2022, criticized the state's prior approach, stating that allowing companies like Fondomonte to pump unlimited groundwater without adequate oversight has been a failure. "Why are we allowing a Saudi-owned corporation to stick a straw in the ground and suck so much of our water out and send alfalfa back to Saudi Arabia and not charge them a dime for the water? It is bonkers," Mayes told CIR last year. "Water in Arizona is life. Our very survival as a state depends on our doing better when it comes to water."

The lawsuit alleges that Fondomonte's operations in Arizona are driven by restrictions on such practices in Saudi Arabia, another arid nation with limited water resources. "Fondomonte came to Arizona to extract water at an unreasonable and excessive rate because doing so was banned in its home country—another arid desert with limited water," the lawsuit states. "Fondomonte is taking advantage of Arizona’s failure to protect its precious groundwater resource."

Fondomonte responded in a statement, calling the allegations "totally unfounded" and vowing to defend its rights vigorously. The company did not immediately provide further details regarding the lawsuit.