Arizona is leasing farmland to a Saudi water company, straining aquifers, and threatening future water supply in Phoenix. Fondomonte, a Saudi company, exports the alfalfa to feed its cows in the Middle East. The country has practically exhausted its own underground aquifers there. In Arizona, Fondomonte can pump as much water as it wants at no cost. Groundwater is unregulated in most rural areas of the state. Fondomonte pays only $25 per acre annually. The State Land Department says the market rate is $50 dollars per acre and it provides a 50% discount because it doesn’t pay for improvements.