How to Start a Mushroom Farm

Part 1 - How to start a Mushroom Farm business - Background

Mushroom farm businesses specialize in growing mushrooms. These mushrooms are used by customers for either medicinal or culinary purposes, depending on the type of mushroom grown. Additionally, they may be sold wholesale to clients or at retail prices.

Our guide is in 3 parts:

• Part 1 - How to start a Mushroom Farm business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a mushroom farm?

The startup expenses for a mushroom farm are minimal.

Business owners need a space for growing mushrooms. This doesn’t need to be a large space — 500 square feet is big enough to grow 12,000 pounds of mushrooms a year, according to Profitable Plants. Business owners should be able to control the temperature, humidity, and light in the space, though.

Many business owners already have a space in their home that meets these requirements. Those that don’t might only have to purchase a space heater, humidifier, or dehumidifier.

The other main upfront costs are buying growing medium and spores, but these are both inexpensive. Straw, cardboard used coffee grounds and many other cheap materials can serve as growing mediums. Mushroom spores can be purchased for just a few dollars.

What are the ongoing expenses for a mushroom farm?

The ongoing expenses for a mushroom farm business are minimal. They include new growing material, additional spores, and utility costs.

Who is the target market?

A mushroom farm business’ ideal customer is a restaurant that focuses on using locally sourced ingredients. A restaurant will have regular orders that provide stable income. A restaurant that focuses on serving locally sourced foods will be less likely to purchase their mushrooms from a large supplier that’s in another state.

How does a mushroom farm make money?

A mushroom farm makes money by selling harvested mushrooms. Mushrooms might be sold by the pint, quart, or pound.

How much can you charge customers?

Specialty mushrooms typically retail for $16 per pound. Oyster mushrooms wholesale for between $6 and $8 per pound, and other types of specialty mushrooms have similar wholesale prices.

Because most people don’t want to spend $16 on mushrooms, retail sales are usually done by the pint or quarter-pound. Wholesale transactions normally are by the pound.

How much profit can a mushroom farm make?

A mushroom farm business that grows 12,000 pounds of mushrooms and only sells to wholesale clients could make between $72,000 and $96,000 annually. Selling retail in addition to wholesale would significantly increase the business’ revenue. Since the ongoing expenses are minimal, most of this revenue would be profit.

How can you make your business more profitable?

Many mushroom farm businesses add a revenue stream by assembling grow-your-own mushroom kits. These may be in cardboard boxes, logs or some other medium. Offering classes on growing or using mushrooms is another way to increase revenue and profits.

Day-to-Day and Growth

What happens during a typical day at a mushroom farm?

The process of actually growing mushrooms involves three steps:

• preparing growing medium, which takes a few hours and should be done once per week

• misting growing mushrooms, which takes a few minutes and must be done daily

• harvesting mature mushrooms, which takes a few minutes and should be done every day or two

In addition to these tasks, mushroom farm business owners also must find customers, package harvested mushrooms, and deliver mushrooms.

What are some skills and experiences that will help you build a successful mushroom farm?

In order to run a mushroom farm, business owners must know how to grow mushrooms. Many companies offer courses and seminars on growing these fungi. For instance, Fungi for the People offers a week-long course every few months, and Radical Mycology has courses in many different states. Additionally, both Mushroom Mountain and The Mushroom Growers’ Newsletter maintain lists of upcoming conferences and educational events.

Business owners may also want to consult the American Mushroom Institute or the North American Mycological Association. Both organizations have lists of online materials that cover mycology.

Finally, many books about growing mushrooms and starting a mushroom business are available. A few titles include Organic Mushroom Farming and Mycoremediation, Growing Mushrooms for Profit and Starting a Mushroom Growing Business on a Shoestring. Some of these books provide valuable insights into growing mushrooms commercially, while others are helpful resources that can be consulted after a class is over.

What is the growth potential for a mushroom farm?

A mushroom farm business may be a small, one-person operation, or it might grow into a large company that has multiple locations. Detroit Mushroom Factory, which is run by just two people, is an example of a small mushroom farm. Ostrom’s is a much larger company that has customers located throughout the Northwest United States.

What are some insider tips for jump starting a mushroom farm?

While mushrooms are generally easy to grow, some types are easier to grow than others. Heather of Mommypotamus recommends starting with oyster mushrooms, which are the easiest to grow, and then progressing to shiitake mushrooms, which are the next-easiest. From this point, business owners can slowly progress into more challenging kinds.

How and when to build a team

Many mushroom farm businesses are run by just one or two people. Mushroom farms that hire employees usually don’t do so until their revenue supports an employee’s salary.

Part 2 - Is a Mushroom Farm business the right fit for you?

Part 3 - Action plan to launch your Mushroom Farm business in 90 days