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

Governor Katie Hobbs Announces Termination of State Land Leases for AgTech LLC | Office of the Arizona Governor

Governor Katie Hobbs Announces Termination of State Land Leases for AgTech LLC | Office of the Arizona Governor Skip to main content Skip to main navigation Governor Katie Hobbs Announces Termination of State Land Leases for AgTech LLC News Release September 10, 2026 Phoenix, AZ – Today, Governor Katie Hobbs announced that the Arizona State Land Department (ASLD) has terminated five state land agricultural leases held by AgTech LLC and related entities in Yuma County. AgTech LLC currently spreads, injects, and applies treated sewage sludge - commonly referred to as biosolids - and domestic septage at a commercial scale on Arizona State Trust Land. AgTech LLC began leasing state land in 2002. In 2025, AgTech applied over 68,000 dry metric tons of treated sewage sludge with over 97% of that coming from California utilities.“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 Governor Katie 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 average loading rate of biosolids on the overall AgTech LLC site is approximately 140 dry metric tons per acre, which far exceeds the average loading rate of approximately 7 dry metric tons per acre for other Arizona biosolids applicators. An estimated 47 haul trucks deliver material to the site daily, and AgTech is the only registered biosolids land applicator in Arizona applying domestic septage to agricultural land. Local farmers, businesses, and homeowners have raised concerns about fly infestations, overwhelming odors, and the spread of dust and debris in the area. After inspection by the State Land Department, it was found that AgTech LLC was not in compliance with its leases, and 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.The Yuma County Board of Supervisors raised concerns about AgTech’s presence on state land in a letter to ASLD, highlighting the detrimental impact to surrounding farmers and businesses. Read the letter here.AgTech LLC and related entities held five State Land leases for its biosolids operations. ASLD found one in default of their lease agreement and chose to not renew four in order to deliver maximum value to state land trustees and protect funding for Arizona’s public education system. This action by the Arizona State Land Department does not impact the responsible application of biosolids by other Arizona farmers or other State Trust Land agricultural leases granted by the Department. PreviousGovernor’s Office Opens Arizona Game And Fish Commission Application Next Governor Katie Hobbs Launches Program to Cut Red Tape and Lower Housing Costs for Arizonans Governor Hobbs Offices of the Governor News Priorities and Accomplishments Connect Stay In Touch I am a member of the press. Yes No Office of the Governor1700 W. Washington St.Phoenix, AZ 85007602-542- 4331[email protected]azgovernor.gov