Beet production was less than expected, so the men organized the Oregon Land Company and purchased the Nibley property in 1900 to attract experienced beet farmers from their home state of Utah.[3] By 1902 Nibley was a flourishing village with 20 families and a post office, but beet production continued to be low because of lack of water (as Nibley anticipated irrigation becoming available) and unfavorable weather.[2][3][5]
In 1905 there was a typhoid epidemic and more bad weather.[3] The Oregon Sugar Company factory in La Grande was closed in 1906, the town ceased to exist on December 29, 1906, and the post office shut down.[2][3]
As a company town, Nibley was not considered a proper town by some historians.[5]Nibley, Utah was also named for Charles W. Nibley.[6]