NAICS 111991 Quarterly Industry Report
Sugar Beet Farming
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 111991Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry profile for NAICS 111991 provides business owners, buyers, and valuation professionals with sector-specific benchmarks and market context for sugar beet farming operations. Additional data is drawn from Bureau of Labor Statistics[4], U.S. Census Bureau[5].. Content is compiled from USDA NASS[2] crop production reports, USDA ERS[3] sugar market data, and SBA[6] regulatory filings to support informed valuation and transaction analysis.
Industry Snapshot
Key metrics for the sugar beet farming industry.
NAICS Sector
11
Agriculture, Forestry, Fishing and Hunting
Industry Definition & Overview
Sugar Beet Farming (NAICS 111991) encompasses establishments primarily engaged in growing sugar beets for processing into refined beet sugar [1]. The U.S. sugar beet sector represents a roughly $3.5 billion total addressable market, with record beet sugar production of 5.347 million short tons raw value (STRV) forecast for the 2024/25 crop year, contributing to record total domestic sugar production of 9.495 million STRV [2]. Production is concentrated in the northern Great Plains and upper Midwest, with Minnesota, North Dakota, Idaho, Michigan, Montana, Wyoming, Colorado, and Nebraska serving as the primary sugar beet growing states[2]. Roughly 1.1 million acres of sugar beets are harvested annually across these regions [3].
Sugar beet farming is conducted as part of multi-crop rotation systems, with beets typically planted in spring and harvested in the fall over a roughly 150- to 170-day growing season. Most sugar beet growers are members of farmer-owned cooperative processing companies that operate beet sugar factories, creating a vertically integrated structure where growers share in both farming revenue and processing returns. Operations are highly mechanized, using specialized planters, cultivators, harvesters, and truck fleets to manage planting and harvest campaigns across large acreages. Per USDA ERS[3] sugar market analysis, the industry operates under the federal sugar program's price support and marketing allotment system, which provides a domestic price floor above world market levels. Key challenges include input cost inflation, disease pressure from cercospora leaf spot and rhizomania, competition for cropland from corn and soybeans, and sensitivity to processing capacity constraints at cooperative sugar factories.
What's Included in This Industry
- Sugar beet farming for sugar processing
- Irrigated sugar beet production operations
- Dryland sugar beet cultivation
- Sugar beet seed production and propagation
- Cooperative-contracted sugar beet growing
- Organic sugar beet farming operations
- Sugar beet grown in rotation with grain crops
- Other sugar beet production establishments
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Crop Production | 111 |
| Industry Group | Other Crop Farming | 1119 |
| NAICS Industry | All Other Crop Farming | 11199 |
| National Industry | Sugar Beet Farming | 111991 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 111930 | Sugarcane Farming | Sugarcane farming operations producing the other major domestic sugar crop that competes with beet sugar for marketing allotments under the federal sugar program |
| 111150 | Corn Farming | Corn farming operations that compete for the same northern Great Plains cropland and whose high fructose corn syrup competes with beet sugar in the sweetener market |
| 111140 | Wheat Farming | Wheat farming operations frequently rotated with sugar beets in northern Great Plains crop management systems to maintain soil health and break pest cycles |
| 111110 | Soybean Farming | Soybean farming operations competing for cropland allocation in the upper Midwest where farmers choose among beets, soybeans, corn, and wheat each season |
| 115113 | Crop Harvesting, Primarily by Machine | Crop harvesting services providing specialized sugar beet harvesting, topping, and truck loading equipment during the concentrated fall harvest campaign |
| 115112 | Soil Preparation, Planting, and Cultivating | Soil preparation services providing field preparation, precision leveling, and seedbed conditioning for commercial sugar beet planting operations |
Frequently Asked Questions
Common questions about this industry.
What is classified under NAICS 111991?
NAICS 111991 covers all sugar beet farming operations, including establishments growing sugar beets for delivery to processing factories for refinement into beet sugar [1]. The U.S. Census Bureau[9] classifies both irrigated and dryland sugar beet production under this code, as well as seed beet propagation operations.
What is the SBA size standard for sugar beet farming?
The SBA sets the small business size standard for NAICS 111991 at $2.5 million in average annual receipts [4]. This threshold determines eligibility for federal small business programs including SBA-backed loans, contracting preferences, and disaster relief. Per SBA regulations[10], receipts are calculated as a multi-year average of gross annual income including cooperative distributions.
How large is the U.S. sugar beet farming industry?
The U.S. sugar beet sector has a total addressable market of roughly $3.5 billion, with record beet sugar production of 5.347 million STRV forecast for the 2024/25 crop year [2]. Per USDA NASS[2] data, roughly 1.1 million acres of sugar beets are harvested annually across the primary growing states of Minnesota, North Dakota, Idaho, Michigan, Montana, Wyoming, Colorado, and Nebraska.
How are sugar beet cooperatives structured?
Most U.S. sugar beet growers are members of farmer-owned cooperative processing companies such as American Crystal Sugar, Minn-Dak Farmers Cooperative, and others that own and operate beet sugar factories. Growers deliver harvested beets to their cooperative's factory under contractual terms, and receive payments based on sugar content, factory efficiency, and refined sugar market prices. Per USDA ERS[3] cooperative analysis, this integrated structure means grower returns are tied to both agricultural production performance and downstream processing and marketing outcomes.
What factors affect sugar beet farm valuation?
Key valuation factors include total cultivable acreage within delivery distance of an operating sugar factory, cooperative membership shares or delivery rights, soil quality and sugar beet yield history, irrigation infrastructure where applicable, crop rotation flexibility with grains and oilseeds, and equipment inventory. Proximity to a factory is a threshold requirement, as sugar beets are perishable and must be delivered promptly after harvest. Loss of nearby factory access can substantially diminish farmland value for beet production.
What crop rotation practices do sugar beet farmers follow?
Sugar beets are typically grown in three- to four-year rotation cycles with wheat, corn, soybeans, barley, or dry beans to manage soil-borne diseases, maintain fertility, and reduce pest pressure. Rhizomania, cercospora leaf spot, and root rot organisms build up in soil when beets are planted too frequently, making rotation a production necessity rather than optional. Per USDA NASS[2] survey data, the allocation of cropland between sugar beets and alternative rotation crops is influenced by relative commodity prices, cooperative delivery contracts, and expected per-acre returns.
How does the federal sugar program affect beet farmers?
The federal sugar program provides nonrecourse loans using sugar as collateral, allocates domestic marketing allotments between beet and cane processors, and limits sugar imports through tariff-rate quotas. This framework supports domestic sugar prices above world market levels, providing revenue stability for beet growers and their cooperatives. Per USDA ERS[3] policy analysis, the sugar program's allotment system directly determines how much sugar each cooperative can market, which in turn affects contracted beet acreage and grower payment levels.
What is the sugar beet harvest and processing timeline?
Sugar beet harvest typically begins in late September and runs through November in most northern growing regions, with some early-harvest operations beginning in August for factory start-up. Harvested beets are either delivered directly to the factory for immediate processing or stored in ventilated outdoor piles for processing during the winter campaign, which can extend through March or April. The USDA Risk Management Agency[11] provides crop insurance that covers losses during both the growing season and the critical post-harvest storage period when freeze-thaw cycles can damage stored beet quality.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]sugar beet growing states nass.usda.gov
- [3]USDA ERS ers.usda.gov
- [4]Bureau of Labor Statistics bls.gov
- [5]U.S. Census Bureau census.gov
- [6]SBA sba.gov
- [7]SBA 7(a) loans sba.gov
- [8]504 loans sba.gov
- [9]U.S. Census Bureau census.gov
- [10]SBA regulations sba.gov
- [11]USDA Risk Management Agency rma.usda.gov
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