AgTech LLC says it plans to challenge Arizona’s decision on Thursday to terminate five state land leases used for biosolids operations in Yuma County.
The company said it received notice of the action from the Arizona State Land Department and was surprised and disappointed by the decision.
“We are carefully reviewing the notice and the circumstances surrounding the decision,” AgTech said in a released statement to KAWC. “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.”
The announcement follows Gov. Katie Hobbs’ statement that the State Land Department had terminated five agricultural leases held by AgTech and related entities. The state said one lease was in default and that it would not renew the other four because continued leasing was not in the best interest of the State Land Trust.
AgTech applies treated sewage sludge, commonly known as biosolids to agricultural land in Yuma County. The state has said the company’s operations generated complaints from local farmers, businesses and residents about odors, flies, dust and debris.
Hobbs said the company’s operations were harming local businesses and farmers and that Arizona should not serve as a disposal site for treated sewage sludge from California. The governor’s office said AgTech applied more than 68,000 dry metric tons of treated sewage sludge in 2025, with more than 97 percent coming from California utilities.
AgTech disputed the state’s characterization of its operations and said its legal team is evaluating the matter.
“AgTech intends to exercise all rights available to us, including our right to appeal under applicable Arizona law,” the company said.
The company said it remains committed to working with the state while protecting the interests of its employees, the Yuma community and AgTech.
Tyler Woodman, owner of Lemon Grove and Grove 95, vice president of the Yuma Mesa Food Growers Association and a board member of the Arizona Research Citrus Council for the governor’s office, said he welcomed the state’s decision.
“I think it is a great step on the road to accountability,” Woodman said.
Woodman has been one of the most visible voices in Yuma County’s growing debate over biosolids.
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Editor's Note: On Friday morning, KAWC will be interviewing Attorney General Kris Mayes for the latest developments and next steps for Yuma.
Part 2 of The Cost of Waste, our three-part series on biosolids is on stand by following Thursday's late announcement. Stay tuned to KAWC for the latest information as we receive it.
