The objective of this research is to identify determinants that influence sugar beet plant survival. Important determinants identified from the literature are hypothesized to include capacity, market concentration, ownership, government policies, and historical industry events unique to this industry. As suggested by industrial organization theory, plants with greater capacity and multi‐plant firms have lower rates of closure. Likewise, the use of a high tariff on imports of refined sugar, the use of quotas on imports of sugar from various countries, and a price support program that encouraged plants to become more cost efficient have lessened the rates of closure.