AgTech challenges ASLD’s cancellation of its five agricultural leases

PHOENIX (KYMA) - AgTech said they are challenging the Arizona State Land Department's (ASLD) cancellation of five agricultural leases on Arizona State Trust Land.

In a letter to ASLD Commissioner Robyn Sahid, AgTech's attorney, Stuart Kimball, said in part, "ASLD has violated the due process procedures and protections afforded by statute to our client before ASLD could terminate or cancel AgTech's leases."

"AgTech has consistently sought to comply with its leases and applicable state and federal requirements," Kimball added. "The statutory process is straightforward: before a lease can be canceled for a curable default, the lessee must receive proper notice and an opportunity to cure. AgTech did not receive that notice before the September 10 cancellation letters."

AgTech's leases were terminated earlier this month after ASLD conducted an inspection, where they found AgTech was not in compliance with its leases, prompting Commissioner 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.

The Governor's Office 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.

To read the letter in full, see attached file.