Bill would impose water tax on exported crops

 Alfalfa is often the target of critics of irrigated agriculture who frequently rely upon simplistic explanations to heap scorn upon growing a forage crop in the West during times of drought.

Two Democratic congressmen from Arizona -- Ruben Gallego and Raúl Grijalva -- last month introduced the “Domestic Water Protection Act of 2022” (H.R. 9194), which would impose an excise tax on the sale of a “water-intensive” crop. The tax is 300% of the price for which the crop is sold and is paid by the manufacturer, producer, or importer of the crop.

The bill defines water-intensive crop as a crop grown in an area experiencing prolonged drought at the time such crop is grown, and by a manufacturer, producer, or importer that is a foreign corporation or foreign government.H.R. 9194 is aimed at Saudi Arabia's largest dairy company and its subsidiary Fondomonte, which grows alfalfa in western Arizona for export. Fondomonte leases the farmland from the state of Arizona but does not pay for the water.

There are many other producers of alfalfa besides Fondomonte in Arizona, and many of them have alfalfa export contracts. Some export directly to countries like Japan and others do so through various export hay brokers in California. There are also growers who sell hay directly to Fondomonte for export, since Fondomonte provides a market for other growers in Arizona...MORE