Adrik Vargas
YUMA, Ariz. (KYMA) – Locals across Yuma County are sharing their reaction to AgTech’s state land leases being terminated.
Gov. Katie Hobbs (D-Ariz.) announced the news in a press release, saying Arizona State Land Department (ASLD) has terminated five state land agricultural leases held by AgTech and other related entities in Yuma County.
“I’m proud of the Arizona State Land Department for taking this critical action to protect the best interests of the State Land Trust,” said Gov. Hobbs. “Arizona is not a disposal site for California’s treated sewage sludge, and AgTech’s commercial operations on Arizona state land were damaging local businesses, hurting Arizona farmers, and eroding the quality of life of families in the community, all at the expense of Trust beneficiaries, largely K-12 education. I’m proud we have protected Yuma County from the harmful environmental and economic impacts of their operation. My administration will continue taking action to put Arizona first and protect our state land.”
The Governor’s Office also said AgTech has a 90-day period before they have to be off the land. The cancellation of the leases is immediate, but they have a few months to wind down their operations on those parcels of land.
In addition, Arizona Attorney General Kris Mayes responded to AgTech’s leases being terminated saying in part, “For too long, the people of Yuma were told to live with the flies, the smell, and the uncertainty about what was going into their soil and water. No Arizonan should have to put up with such conditions.”
The announcement comes a week after the Yuma City Council voted to renew their contract with AgTech.
However, the news of the contract renewal drew mixed reaction within the Yuma community as farmers, businesses and homeowners “raised concerns about fly infestations, overwhelming odors, and the spread of dust and debris in the area,” according to the Governor’s Office.
After ASLD conducted an inspection, they found AgTech was not in compliance with its leases, prompting Land Commissioner Robyn Michelle Sahid to determine “that continued leasing of the land to AgTech LLC and related entities was not in the best interest of the State Land Trust,” the Governor’s Office said.
In response to Gov. Hobbs’ announcement, AgTech released the following statement on their leases being terminated:
“We can confirm that an AgTech employee received notice today from the Arizona State Land Department regarding our leases and we received the same information via email from the assistant to the Commissioner.
We are surprised and disappointed by this development and are carefully reviewing the notice and the circumstances surrounding the decision. We firmly believe that we have been responsible stewards of the land, as testing by ADEQ supports, and remain deeply committed to the Yuma community and to our employees.
Our legal team is evaluating the matter, and AgTech intends to exercise all rights available to us, including our right to appeal under applicable Arizona law.
We remain committed to working constructively with the State while protecting the interests of our employees, our community, and our company.”
AgTech issued another statement Friday saying:
“Legal counsel is reviewing the materials to prepare the appeal and pursue other available legal actions. A quick read of the renewal denial letters shows that the Arizona State Land Department has violated the due process provisions of its own leases and the statutory protections granted under the Regulatory Bill of Rights.
The State’s actions are disappointing given these protected rights. Unfortunately, facts are taking a back seat as early voting is just around the corner. The facts are these: State Land issued no prior allegations of noncompliance before the denial letter, as required by the lease and state law. ADEQ has not identified any compliance concerns with the permit, including the application rate, nor has ADEQ alleged any nuisance, environmental, or other concerns.
These unlawful actions establish a slippery slope that should worry all Arizona farmers and Arizona businesses. Denying government approvals without substantiated facts or specific statutory authority is problematic.
Political games have real-world impacts. These unsubstantiated actions raise concerns about the status of nearly a hundred jobs and the families they support, in a county that leads the state in unemployment by as much as three times the state average.
Additionally, if not reversed, costs for Arizonans will increase. Alternatives to biosolids land application has a documented cost of as much as 2 to 5 times more, which ultimately will be passed on to residents and ratepayers.
Furthermore, if these decisions stand, there will be negative environmental impacts. Land application of biosolids is not a fringe or experimental practice; roughly 60% of the biosolids generated nationally are recycled as an agricultural amendment in 48 states. Arizona is one of only nine states the EPA trusts to independently administer this federal program, a fact that reflects a mature, functioning regulatory relationship, not the absence of oversight. As noted by the U.S. Environmental Protection Agency, land application of biosolids ‘can have environmental benefits including improved soil health, carbon sequestration, and reduced demand on non-renewable resources like phosphorus,’ and also ‘generates reduced emissions of greenhouse gases compared to other management practices.’
To our employees, we value you and are committed to doing all we can to ensure your jobs are safe today, tomorrow and well into the future. To our customers, rest assured that we will continue to provide you with the safe and reliable service you expect while we work through this unfortunate, and frankly, outrageous development; and to fellow members of the agricultural community, we appreciate your support, and we are committed to using our resources not only for our own protection, but yours as well.”
Yuma County District 3 Supervisor Jonathan Lines also issued a statement regarding the leases being terminated saying:
“On September 10, the Arizona State Land Department informed Yuma County that it had notified its lessee, AgTech, LLC, that the agricultural leases addressed in ASLD’s notice would not be renewed. The County appreciates ASLD’s attention to this matter and its continued communication with the Board.
ASLD stated that its decision was based on its determination that the lessee had not been in substantial compliance with the terms of the agricultural lease. That determination was made by ASLD under its authority to manage State Trust Land.
Yuma County’s role has been to communicate concerns received from nearby residents, agricultural producers, and businesses to the agency responsible for the land. In December 2025, the Board asked ASLD to terminate the month-to-month lease identified in its letter and consider a future use consistent with the responsibilities of the State Land Trust and compatible with the surrounding community.
The lessee has appeal rights. ASLD advised that, if an appeal is not pursued, the lessee will have 90 days to cease operations and an additional 90 days to vacate the property. The County will rely on ASLD for confirmed information regarding the status and timing of that process.
This is a lease-specific decision involving the identified State Trust Land. It does not create a statewide prohibition on biosolids or change Arizona laws and regulatory requirements governing biosolids elsewhere in the state.
Separate from this lease decision, Yuma County remains committed to its statutory seat on the Biosolids Study Committee established by Senate Bill 1336. The Committee will review biosolids use statewide, including on State Trust Land, evaluate Arizona’s policy on accepting biosolids from other states, and recommend any rule or legislative changes it determines are necessary.”
State Rep. Mariana Sandoval (D-District 23) released a statement reacting to the news saying:
“As one of the legislators representing this area, I applaud Governor Katie Hobbs and the Arizona State Land Department for taking action to terminate the state land leases held by AgTech LLC and related entities.
For far too long, local residents, farmers, and businesses have raised serious concerns about the impacts of this operation on our community, including odors, flies, dust, truck traffic, and the overall quality of life for families living nearby. This has been a significant concern raised by the residents I represent, and I am glad to see meaningful action taken to remove this dump site from our community.
Our communities deserve to be good neighbors to one another, and Arizona’s state lands should be managed in a way that protects the health, safety, quality of life, and economic interests of the people who live and work here.
I commend Governor Hobbs and the Arizona State Land Department for listening to the concerns of Yuma County residents and taking this important step. I look forward to continuing to work with state and local leaders to ensure our community is protected and that its concerns are heard.”
Tyler Woodman, the owner of The Lemon Grove, posted to Facebook, saying AgTech is suing him for speaking out against them.
As a result, a GoFundMe has been created to help pay for Woodman’s legal fees. It has a goal of $20,000, with nearly $16,700 raised so far.
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