Arizona decides to cancel land lease for Almarai unit: Report

Almarai Co. headquarters

 The US state Arizona canceled a land lease contract for Fondomonte Arizona, which is wholly owned by Almarai Co., The Associated Press reported.

Arizona Governor Katie Hobbs said the state canceled Fondomonte Arizona’s lease in western Arizona’s Butler Valley and would not renew three other leases up for renewal there next year.

An investigation by the governor’s office found that the company violated some of its lease terms.

Hobbs called it unacceptable that the farm “continued to pump unchecked amounts of groundwater out of our state while in clear default on their lease.”

Through a spokesperson, Fondomonte said it would appeal the governor’s decision to terminate its 640-acre (259-hectare) lease in Butler Valley. Altogether, Fondomonte farmed about 3,500 acres (1,416 hectares) in the rugged desert area west of Phoenix.

Worsening drought in Arizona has brought renewed attention to the company’s water use and the broader issues of foreign-owned farms and groundwater pumping.