Limoneira Company (NASDAQ: LMNR) announced the completion of definitive agreements to form a 50-50 joint venture with California Wood Recycling, Inc. dba Agromin for a commercial composting facility in Santa Paula, California.

The joint venture will develop a 70-acre commercial composting center on Limoneira property, expanding from an existing 15-acre green waste composting operation. The facility is designed to process approximately 295,000 tons of organic waste annually and is expected to become operational in the second half of fiscal year 2027.

Limoneira will lease the 70-acre site to the joint venture for approximately $560,000 annually. The lease agreement includes 89 acre-feet of annual water supply to the facility. The joint venture is expected to generate revenue through gate fees from waste haulers and sales of compost products.

The facility represents the only permitted commercial composting center in Ventura County and is intended to help California communities meet Senate Bill 1383 mandates for organic waste diversion and greenhouse gas reduction. The center is designed to divert approximately 75% of Ventura County's landfilled organic waste.

"The completion of this joint venture agreement represents a transformational milestone for Limoneira as we execute our diversification strategy and build new platforms for scalable growth," said Harold Edwards, President and Chief Executive Officer of Limoneira Company.

Agromin serves over 200 California communities and processes more than 1 million tons of organic material annually. Bill Camarillo, CEO of Agromin, stated the partnership combines agricultural expertise with proven organic recycling capabilities.

The information is based on a company press release statement.