A Saudi business is leaving Arizona valley after it was targeted by the state over groundwater use

PHOENIX (AP) — Arizona officials said a Saudi-owned company they targeted over its use of groundwater to grow forage crops is moving its farming operation out of a valley in the Southwestern state’s rural west.

Gov. Katie Hobbs and the Arizona State Land Department announced late Thursday that Fondomonte Arizona is officially no longer pumping water in the Butler Valley groundwater basin. Some residents of La Paz County had complained that the company’s pumping was threatening their wells.

A statement by Hobbs says an on-site inspection had confirmed that Fondomonte was moving to vacate the property. Fondomonte has several other farms elsewhere in Arizona that are not affected by the decision.

A call placed Friday seeking comment from Fondomonte’s Arizona office was not immediately returned.

Current Arizona regulations allow virtually unfettered groundwater pumping in the state’s rural areas.

Climate-challenged countries like Saudi Arabia have increasingly looked to faraway places like Arizona for the water and land to grow forage for livestock and commodities such as wheat for domestic use and export.

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