Arizona cancels state land leases for Yuma biosolids company after fly, odor concerns

YUMA, AZ (AZFamily) — State officials have canceled land leases for a company that imports treated sewage sludge from California following years of complaints from local farmers and residents over severe fly infestations and foul odors.

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Gov. Katie Hobbs and Attorney General Kris Mayes announced the decision to terminate AgTech LLC’s state land leases Thursday afternoon after an inspection by the Arizona State Land Department found the company had violated its lease agreement.

AgTech has operated in the Yuma area for roughly 50 years, applying biosolids to agricultural land. State investigators found the company dumped more than 68,000 dry metric tons of treated sewage sludge onto leased state land, with more than 97% originating from California utilities. Investigators reported the application rate reached roughly 140 dry metric tons per acre — about 20 times higher than the typical Arizona rate of 7 dry metric tons per acre.

Following the review, the State Land Commissioner found AgTech in default on one lease and opted not to renew four others, determining continued operations were not in the best interest of the State Land Trust.

Local community members described the move as a welcome development after years of pushing for change.

“Basically, my whole adult life, we have been watching more and more and more trucks that stink really bad heading south every day, and as the flies got worse,” said Tayler Woodman, a local lemon grove owner and community advocate. “I’ve been vocal about this for years, but the fact that everyone listened this year was a bonus, so I am glad something actually happened, and we can move forward and get some accountability.”

Mayes previously noted she first learned of the severity of the issue through social media posts shared by local residents like Woodman.

However, the dispute has also triggered legal battles. Woodman said he was served with a defamation lawsuit from AgTech shortly before the state’s announcement.

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“To me, I think it was a really bad timing for this to happen,” Woodman said. “If they wanted to sue me they could have done it three months ago. Why now?”

AgTech declined an on-camera interview but issued an updated statement pushing back against the state’s decision and announcing plans to appeal. It says in part:

“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.”

While the state leases have been canceled, several local residents say they continue to push for further environmental testing across the area.

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