Limoneira Company has officially signed definitive agreements to form a 50/50 joint venture with California Wood Recycling, Inc., operating as Agromin. The partnership will develop a 70-acre, state-of-the-art commercial composting centre on Limoneira property in Santa Paula, California. This facility represents a significant advancement in Limoneira’s diversification strategy, transitioning underutilised land and conserved water into an active organics recycling platform.
The joint venture is strategically positioned to address the stringent requirements of California Senate Bill 1383 (SB 1383), which mandates significant organic waste diversion and greenhouse gas reduction. As of 2026, California municipalities continue to seek infrastructure to meet these regulatory burdens.
Key environmental and operational impacts of the facility include:
Waste Diversion: The centre is expected to divert approximately 75% of Ventura County’s landfilled organic waste.
Permitting Milestone: The project is the result of 15 years of planning and remains the only permitted commercial composting centre in Ventura County capable of processing both green and food waste.
Long-Term Utility: The facility is permitted to operate for the next 50 years, providing a stable solution for local communities to meet state-mandated targets.
Financial Structure and Revenue Streams
The joint venture utilises a multi-layered revenue model designed to provide consistent EBITDA for both partners. Limoneira will lease the 70-acre site to the venture for approximately $560,000 annually, a deal that includes 89-acre feet of annual water supply.
Primary revenue drivers for the venture include:
Gate Fees: Charges collected from waste hauliers delivering green and food waste to the facility.
Compost Sales: The sale of processed organic material as high-quality compost and mulch.
Internal Application: Limoneira will utilise the resulting compost across its own agricultural operations to enhance soil health and productivity.
Operational Timeline
The project involves expanding an existing 15-acre green waste operation into a comprehensive 70-acre organic recycling centre. The upgraded facility is projected to process roughly 295,000 tons of waste per year. Management expects the facility to become fully operational in the second half of fiscal year 2027.
Harold Edwards, President and CEO of Limoneira, characterised the agreement as a transformational milestone that optimises the company's capital allocation. Edwards noted that the venture represents the "highest and best use" of the land and water assets, generating both rental income and joint venture earnings.
Bill Camarillo, CEO of Agromin, highlighted the synergy between Agromin’s recycling footprint—which spans over 200 California cities—and Limoneira’s agricultural infrastructure. Camarillo emphasised that the partnership serves as a model for how the agricultural and waste management sectors can collaborate to support regenerative agriculture initiatives.
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