A US lawmaker from the state of Arizona has introduced legislation in Congress that would impose a 300 percent tax on the sale of water-intensive crops grown by foreign companies in the state, in a bid to curb the extensive use of water in the drought-stricken state.
Its the consumption of of water. One of the plants that is likely targeted by the tax is alfalfa, which is a plant used for animal feed. The top importers of alfalfa is china, uae and saudi arabia. Alfalfa is a very water intensive plant and most of its grown in the southwest/California.
It basically makes states $ at the cost that its a huge water drainer. Albeit not Arizona, keep in mind in california, resident use of water is only like 5% of the supply, and wouldnt be suprised of Arizona would be similar. Were in a drought basically to subsidize the price of poultry/cattle for other major nations
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Well yes but this foreign company is using the water to grow a product that is exported. Foreign companies who are doing the same thing to sell locally may get screwed by this, but I’m not sure how many would be affected.