Arizona: Governor Katie Hobbs Announces Termination of State Land Leases for AgTech LLC

Phoenix, AZ ~ Phoenix, AZ - In a move to protect the best interests of the State Land Trust, Governor Katie Hobbs announced today that the Arizona State Land Department (ASLD) has terminated five state land agricultural leases held by AgTech LLC and related entities in Yuma County. The decision comes after concerns were raised by local farmers, businesses, and homeowners about the company's commercial operations on Arizona State Trust Land.

AgTech LLC has been leasing state land since 2002 for their operations which involve spreading, injecting, and applying treated sewage sludge - commonly known as biosolids - and domestic septage at a commercial scale. However, in 2025 alone, AgTech applied over 68,000 dry metric tons of treated sewage sludge with over 97% of it coming from California utilities.

Governor Hobbs expressed her pride in the ASLD for taking this critical action to protect the State Land Trust. She stated that Arizona should not be used as a disposal site for California's treated sewage sludge and that AgTech's operations were causing harm to local businesses and farmers while also negatively impacting the quality of life for families in the community. She emphasized that this was all at the expense of Trust beneficiaries, primarily K-12 education. The governor also assured that her administration will continue to prioritize Arizona's interests and protect state land.

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Upon inspection by the State Land Department, it was found that AgTech LLC was not in compliance with its leases. The average loading rate of biosolids on their site was approximately 140 dry metric tons per acre, far exceeding the average loading rate of other Arizona biosolids applicators which is around 7 dry metric tons per acre. Additionally, an estimated 47 haul trucks were delivering material to the site daily. It was also discovered that AgTech was the only registered biosolids land applicator in Arizona applying domestic septage to agricultural land.

The Yuma County Board of Supervisors also raised concerns about AgTech's presence on state land and its detrimental impact on surrounding farmers and businesses. In a letter to the ASLD, they highlighted issues such as fly infestations, overwhelming odors, and the spread of dust and debris in the area.

As a result of these findings, the Land Commissioner determined that continued leasing of the land to AgTech LLC and related entities was not in the best interest of the State Land Trust. Therefore, ASLD found one lease in default and chose not to renew four others in order to protect funding for Arizona's public education system and deliver maximum value to state land trustees. It is important to note that this action by ASLD does not affect other Arizona farmers who responsibly apply biosolids or other State Trust Land agricultural leases granted by the Department.

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In conclusion, Governor Hobbs' announcement marks a significant step towards protecting Arizona's interests and ensuring that state land is used responsibly for the benefit of all. The termination of these leases serves as a reminder that Arizona will not tolerate being used as a dumping ground for other states' waste products.

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