Summary of "The Water Mystery Unfolding in the Western U.S."
The Indicator from Planet Money delves into the escalating water tensions in rural Arizona, spotlighting the intricate interplay between agricultural practices, foreign investments, and outdated water regulations. Hosted by Darren Woods and featuring insights from NPR’s Zach Ziegler and local official Holly Irwin, the episode unpacks the multifaceted crisis threatening La Paz County's water supply.
1. Introduction to the Water Crisis
The episode opens with Arizona Attorney General Chris Mays announcing a lawsuit against Fondomonte, a company accused of excessively pumping underground water for alfalfa farming. This action sets the stage for exploring the broader water scarcity issues in the Western United States.
Key Quote:
"Excessive is dewatering nearby wells. Excessive is causing subsidence in a way that potentially damages infrastructure. Excessive is pumping so much water that it damages the quality of the water that remains."
— Holly Irwin [00:28]
2. Fondomonte’s Controversial Practices
Fondomonte, a company with significant ties to the Saudi royal family, has been cultivating alfalfa in Arizona’s arid lands. Despite the presence of massive groundwater basins, local residents face dwindling water supplies, compelling them to either invest heavily in deeper wells or relocate.
Key Points:
- Location and Impact: La Paz County, characterized by its rural landscape with fewer than five people per square mile, relies heavily on groundwater.
- Community Struggles: Residents experience well depletion, leading to substantial personal costs for securing water or moving away.
Key Quote:
"Residents there have been complaining about their wells going dry for some time now. That is leaving them with the choice to spend tens of thousands to dig deeper for their water or find a new home."
— Zach Ziegler [01:20]
3. Foreign Ownership and Agricultural Export
Fondomonte exports most of its alfalfa harvest back to Saudi Arabia to feed dairy cows, exacerbating local water shortages. The company's operations are not limited to owned land but also extend to state-leased areas, intensifying the strain on Arizona’s water resources.
Key Points:
- Export Dynamics: Alfalfa grown in Arizona serves international markets, primarily Saudi Arabia.
- Land Leasing: Fondomonte initially leased approximately 6,500 acres from the state, with over half the leases recently expired or canceled by Governor Katie Hobbs.
Key Quote:
"They're growing hay because they can do it all year long here. They can ship it. You know, they're shipping it back to their country."
— Holly Irwin [04:23]
4. Regulatory Loopholes and Water Extraction
Despite Arizona’s long-standing relationship with water-intensive agriculture, existing laws have not kept pace with current demands. Sharon Megdahl from the University of Arizona highlights that outside major cities, water regulations are lax, allowing extensive groundwater pumping under the guise of "reasonable use."
Key Points:
- Regulation Gaps: Current laws, last updated over four decades ago, fail to adequately manage groundwater extraction in rural areas.
- Reasonable Use Standard: Although agriculture is considered a reasonable use, locals contest the heavy water usage for export-oriented crops.
Key Quote:
"There's basically no regulation on how much you can pump, provided that it's being put to reasonable use."
— Sharon Megdahl [05:09]
5. The Role of Private Equity and Future Threats
The plot thickens with the entry of Water Asset Management, a New York-based private equity firm that acquired a significant swath of farmland previously leased to a UAE company. Local fears suggest that such acquisitions could pave the way for large-scale water extraction to supply burgeoning urban centers like Phoenix and Tucson.
Key Points:
- Acquisition Details: Water Asset Management purchased 13,000 acres for approximately $100 million.
- Local Concerns: Residents worry that the firm might prioritize water extraction for city use over agricultural needs, reminiscent of past attempts by cities to procure water farms.
Key Quote:
"They fear the private equity firm plans to pump their underground water, then sell it to growing cities like Phoenix and Tucson."
— Zach Ziegler [06:49]
6. Legislative Responses and Challenges
Efforts to modernize Arizona’s water laws have faced significant hurdles. Recent legislative attempts to address these issues, including bills supported by local supervisors like Holly Irwin, have stalled, highlighting the complexity of balancing agricultural demands with sustainable water management.
Key Points:
- Failed Legislation: A proposed bill aimed at regulating groundwater extraction did not advance beyond committee stages.
- Call for Reform: Local officials advocate for updated laws that reflect current environmental and economic realities.
Key Quote:
"The laws that were created in 1980 just frankly don't work anymore and we need an alternative."
— Holly Irwin [09:11]
7. Community Impact and Future Directions
The persistent water shortages have left lasting scars on La Paz County’s infrastructure and quality of life. With continued legal battles and potential regulatory reforms on the horizon, the community remains vigilant, striving to secure its water future against both foreign and domestic pressures.
Key Points:
- Infrastructure Damage: Excessive water pumping has led to subsidence, threatening local infrastructure.
- Ongoing Legal Actions: Fondomonte maintains its stance, asserting compliance with state laws and challenging the Attorney General’s allegations.
Key Quote:
"We find the allegations of the Attorney General totally unfounded and we will defend any potential action against Fondomonte and our rights vigorously before the competent authorities."
— Fondomonte Spokesperson [08:33]
Conclusion
The episode of The Indicator from Planet Money deftly outlines the intricate water crisis in rural Arizona, illustrating how foreign investments, outdated regulations, and agricultural demands converge to threaten local communities. As La Paz County navigates these challenges, the broader implications for water management in the Western United States become increasingly evident, calling for timely and effective legislative action.
For listeners seeking a more comprehensive exploration, NPR recommends tuning into Tapped AZPM's dedicated podcast series on Southwest water issues, which traces the problem's roots back to the pre-Civil War era.
Key Quote:
"It's definitely been an eye opener. I wasn't aware of it, but, you know, like this job, you learn something new every day."
— Holly Irwin [07:54]
Produced by Cooper Katz McKim with engineering by Gilly Moon and Neil Tivolt. Fact-checked by Sierra Juarez. Edited by Kate Kincannon. The Indicator is a production of NPR.