Small Scale Mushroom Farming: Is It Worth It?

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  • 🌱 Small scale mushroom farming lets you produce in under 100 sq. ft. with low startup costs.
  • 📈 Specialty mushrooms like Lion’s Mane and Shiitake can sell for $10–$20 per pound.
  • ☁️ Fruiting stages require 85–95% humidity for proper mushroom development.
  • 🌡️ The best growing temperatures change a lot for each species (55–80°F).
  • 🧼 You need to be very clean during inoculation and colonization, or you risk contamination.

Growing mushrooms on a small scale—whether at home or as a side business—has become popular fast. This is because it is easy to start, they grow quickly, and people want more of them for food and health. But can you really grow mushrooms at home? Is small scale mushroom farming truly worth your time, money, and space? This guide will show you every important part, like costs, equipment, best species to start with, what the plants need, and how much money you can make.


Indoor mushroom farm set up on vertical shelving

1. What Is Small Scale Mushroom Farming?

Small scale mushroom farming is growing edible or medicinal mushrooms indoors. It uses little space and few supplies, and you can control the conditions. This can be a simple setup at home. Or it can be a more advanced farm in a garage or basement, made to make extra money.

Mushroom farming at this level usually fits into two types:

  • Hobby growing: Growing for yourself to get fresh food, be more self-reliant, or to learn.
  • Micro-enterprise: Businesses that make money. They sell at farmers' markets, to restaurants, or through community-supported agriculture (CSA) boxes.

A main reason people like growing mushrooms on a small scale is that it is sustainable. You can grow mushrooms using farm waste. They need little land, water, and energy. This gives you a very healthy food. It also fits with many ideas about being good to the Earth and eating local food.


Mushrooms growing in containers at home

2. Why Grow Mushrooms at Home or on a Small Scale?

Starting to grow mushrooms at home gives many good reasons. These include ease, saving money, feeling good, and making money:

  • Low startup costs: You can begin with as little as a $25 grow kit or a DIY tub setup.
  • ⏱️ Quick growth cycles: Many mushroom species grow in just 3–6 weeks. Vegetables take months.
  • 🏠 Small space needed: A closet, garage corner, or even a kitchen shelf works well as a grow space.
  • 🌎 Good for the environment: Uses waste products like coffee grounds or straw as substrate.
  • 💡 Educational: It is a good way to learn about biology, being sustainable, and making food.
  • 💰 Income potential: Specialty mushrooms get good prices, even in local markets.

Mushroom growing is flexible, so it is easy to get into and change. You can start with one type of mushroom. Then you can add more slowly, or just keep a small setup for yourself.


Oyster mushrooms growing on vertical shelf in garage

3. Pros & Cons of Small Scale Mushroom Farming

Every type of farming has its good and bad points, and growing mushrooms is the same. You need to know the effort and the reward to decide if mushroom farming is right for you.

✅ Pros

  • Efficient space usage: Uses vertical shelving for high yields in small areas (Letcher, 2020).
  • Good market demand: People want local, organic, and unusual mushrooms for cooking and health.
  • Scalable: You can add to your setup little by little. You can add tents, shelves, or controls for the growing conditions as you need them.
  • Sustainable: Uses waste products like sawdust and farm waste to turn into valuable food.
  • Low water usage: Unlike common crops, mushrooms need little water.

❌ Cons

  • Sensitive to conditions: Mushrooms need steady humidity, airflow, CO₂ levels, and temperature.
  • Contamination risk: Other fungi, bacteria, or molds can destroy your crops if you are not clean enough.
  • Labor-intensive at first: It takes a lot of work at first. Daily checks are important, especially when inoculating and fruiting.
  • Limited species for beginners: Not all mushrooms grow well indoors or with tools for beginners. Some need very specific things.
  • Perishability: Fresh mushrooms do not last long unless dried or processed.

Home mushroom kit with humidifier, thermometer, and grow bag

4. Essential Equipment You’ll Need

You can change your mushroom growing setup a lot to fit your needs. But to always do well, you need the right tools and growing conditions.

🛠️ Core Tools and Supplies

  • Fruiting chamber or tent: This can be a DIY tote with a clear lid, an indoor greenhouse tent, or a converted closet.
  • Shelves or racks: Use vertical space well, especially in tight urban homes or apartments.
  • Spawn: The living mycelium that grows mushrooms. It is usually in a grain-based or sawdust mix.
  • Sterile containers/bags: Poly bags or jars with micropore filters help stop contaminants.
  • Lighting: Simple LED strip lights or indirect natural light copy the day/night cycle mushrooms need.
  • Humidity controller: Misting systems, small room humidifiers, or ultrasonic foggers can help keep humid conditions.
  • Sanitation gear: Gloves, isopropyl alcohol spray, and clean surfaces are key for inoculation stages.
  • Thermometer and hygrometer: Check ideal temperature and humidity daily to lower risk.

The better you make your growing conditions, the more often you will grow healthy, good-producing mushrooms.


Straw and sawdust substrate in tub for mushrooms

5. What Nutrients Do Mushrooms Need?

Unlike green plants, mushrooms do not need sunlight or photosynthesis. They get all their nutrients from a decaying organic food source, called a substrate. These can include:

  • Straw
  • Hardwood chips or sawdust
  • Coffee grounds
  • Cow manure and aged compost
  • Soy hulls or cottonseed meal (extra food)

Different types of mushrooms grow well on different substrates. For example:

  • Oyster mushrooms grow well on straw, cardboard, or coffee grounds.
  • Shiitake prefer hardwood sawdust or logs.
  • Lion’s Mane grows best on hardwood mixes with extra food.

It is important that your substrate has enough nutrients and the right amount of water. But being clean is even more important. Dirty substrate means your crops will fail.


Person adding mushroom spawn to sterile substrate

6. Preparing for Your First Crop

To get your first mushroom crop, you need to follow several basic steps. Think of it like baking or making beer. It is both an art and a science.

Step 1: Choose Your Substrate

Choose one that fits the type of mushroom you are growing. Some common choices:

  • Oyster mushrooms: pasteurized straw or coffee grounds
  • Shiitake: sterilized sawdust bricks
  • Lion’s Mane: hardwood pellet mixtures

Step 2: Pasteurize or Sterilize

  • Pasteurization involves heating the substrate to 160–170°F for an hour. This kills most bad germs but keeps the good ones.
  • Sterilization is stronger. You often use pressure cookers or autoclaves to kill all germs. You need to do this for thick or nutrient-rich substrates.

Step 3: Inoculate

When your substrate is cool and sterile, you can add mushroom spawn. Make sure your hands are clean and gloved.

Step 4: Incubation

Keep the substrate with the spawn in a dark, warm room (~70–80°F, depending on species). Do this for 2–3 weeks while the mycelium grows all over it.


Mushroom grow tent setup with bags and humidifier

7. Creating a Successful Growing Environment

To make an indoor space where mushrooms grow well, you need a clean, controlled area. Here is how to set it up:

  • Incubation area: Usually dark, warm (65–80°F), and with not much airflow.
  • Fruiting chamber: Bright (not direct sunlight), humid, and with good air exchange to lower CO₂.
  • Enclosure: Grow tents or greenhouse racks help keep humidity in and make misting easy.
  • Air exchange: A fan with a timer or passive flaps can keep enough FAE (Fresh Air Exchange).
  • Filtration: Small HEPA filters or carbon filters can help clear spores and make the air better.
  • Clean gear policy: Always wash your hands, sterilize your tools, and follow a cleaning plan before you touch anything.

LED light illuminating small mushroom grow area

8. Lighting Conditions: Less Is More

Unlike leafy plants, mushrooms do not need full-spectrum or very bright lights. Light mainly tells fungi where to grow and changes their behavior. It is not a real energy source for them.

  • 12 hours light / 12 hours dark: copies natural daylight best to start fruiting.
  • LED or indirect daylight: Use 6500K (cool white) LED strips. Place them a few feet from the grow area.
  • Avoid overheating: Lights should not make the fruiting chambers too hot.

Some mushrooms, like Oyster mushrooms, grow toward light. So, having light from a steady direction helps them grow evenly.


Small ventilation fan in fruiting mushroom chamber

9. Managing CO₂ Levels

You need to keep CO₂ levels balanced during a mushroom's whole life.

  • During incubation, high CO₂ (>1000 ppm) helps fast colonization.
  • During fruiting, lowering CO₂ to ~800 ppm helps make compact caps and thick stems.

🚫 High CO₂ during fruiting leads to long, skinny mushrooms. This shows poor air exchange.

Use small fans, open vents, or set up grow tents with regular air flow to control gas levels.


Thermometer showing temperature inside mushroom grow tent

10. Temperature Requirements by Species

Each type of mushroom needs a certain temperature. This greatly affects how well they grow:

Mushroom Species Colonization Temp Fruiting Temp
Oyster 75–80°F 55–75°F
Shiitake 70–80°F 50–70°F
Lion’s Mane 70–75°F 60–70°F
Enoki 70–75°F 40–60°F

Temperature affects not just how fast they grow, but also their quality. Too low a temperature can greatly lower your harvest or make the mushrooms grow strangely.


Humidifier maintaining moisture in mushroom growing area

11. Humidity: Keep It High and Steady

Mushrooms are 80–95% water. Fruiting chambers should keep:

  • Relative Humidity (RH): 85–95% during fruiting
  • Best tools: Automatic humidifiers, ultrasonic foggers, or manual misters
  • DIY tip: Wet towels and Tupperware lid holes work for small setups.

Misting during pinning helps you get stronger crops. Just do not drown young pins or let water sit.


Person harvesting fresh oyster mushrooms by hand

12. Harvesting and Storing Mushrooms

🧺 When to Harvest

  • ❗ Pick them before the cap edges flatten or curl up.
  • ✂️ Cut with a clean knife or twist gently to harvest cleanly.
  • 🍄 Do not wait too long. Very ripe mushrooms lose their texture and nutrients.

🧊 Storing Tips

  • Shelf life: Fresh mushrooms last 5–7 days in paper bags in the fridge.
  • Drying: Drying makes them last much longer and adds value if you sell them.
  • Freezing: Not ideal unless partially cooked first. It changes their texture.

Table with mushroom farming starter supplies and tools

13. What Will It Cost to Start?

Small scale mushroom farming is one of the cheapest ways to start farming in a city.

💵 Startup Costs

Setup Cost Range What it includes
DIY Tub/Bags $100–$200 Substrate, spawn, plastic containers
Starter Kits $30–$80 All-in-one substrate blocks with pre-injection
Mid-Level Tent Setup $300–$500 Tent, humidifier, lights, shelving

💰 Profit Potential

  • Oyster mushrooms: You can get about 25 lbs in one crop, selling at $10–$12/lb.
  • Lion’s Mane: You get less of these, but they sell for $16–$20/lb.
  • Dried mushrooms: You make more money per gram.

(Stamets, 2005; Royse et al., 2017)


Gloved hands inspecting mushrooms for food safety

14. Regulations and Food Safety

Food safety for mushroom farming is not as strict as for meat or dairy. However:

  • Self-use: No rules needed.
  • Selling locally: Follow local Cottage Food Laws or ask your local farm offices for rules.
  • Restaurants and CSA: Might need you to use a commercial kitchen or have a food handler's certificate.

Always be very clean. Moldy or spoiled mushrooms can be bad for health.


Mushrooms displayed for sale at local farmers market

15. Can You Sell Mushrooms from Home?

Yes, you can. Many successful mushroom growers work right from a garage or extra room.

💼 Top Sales Channels

  • Local restaurants (chefs want unusual or medicinal types)
  • Farmers’ markets
  • Online sales through social media or Etsy
  • Farmstand subscription boxes
  • Value-added: Dried packs, teas, tinctures, or grow-at-home kits

Making long-term ties with chefs or small shops can bring in a steady and good income.


Display of oyster, lion’s mane, and shiitake mushrooms

16. Best Beginner Mushrooms to Grow

Pick mushrooms that are easy to grow, fast, and that people want. These three are perfect for newcomers:

  • Oyster (Pleurotus ostreatus): Grows fast, gives a lot, can handle different conditions.
  • Lion’s Mane (Hericium erinaceus): Looks good, people claim it helps the brain, good market value.
  • Shiitake (Lentinula edodes): Worth a lot, lasts long when dried, people want it a lot.

Each has its own needs for substrate, moisture, and light. Look into these and fit them to your growing space.


17. FAQ: Small-Scale Mushroom Farming

Q1: Is small-scale mushroom farming profitable?
Yes. Many growers report good profit margins because mushrooms have a short growth cycle and high demand. Profitability depends on species, setup costs, and your market.

Q2: How much space do I need to start mushroom farming at home?
You can begin with as little as a closet or spare room using mushroom grow bags or monotubs. Larger harvests may require a garage, basement, or small greenhouse.

Q3: What are the easiest mushrooms to grow for beginners?
Oyster mushrooms and lion’s mane are among the easiest to cultivate. They grow quickly, adapt to different substrates, and don’t need complex equipment.

Q4: How much does it cost to start small-scale mushroom farming?
Startup costs vary but can be kept under a few hundred dollars if you use grow bags and simple humidifiers. Advanced setups with tents or automated systems cost more.

Q5: How long does it take to harvest mushrooms?
Most species, like oysters, can be ready in 3–5 weeks from inoculation to harvest. Others, such as shiitake, may take longer.

Q6: Do I need special equipment to grow mushrooms at home?
Not necessarily. You can start with pre-colonized mushroom grow kits, or use bags and tubs with basic humidity and light control. Advanced farmers may invest in grow tents and CO₂ meters.

18. Is Small Scale Mushroom Farming Worth It?

Small scale mushroom farming is worth it. It can give you big results for little cost. Maybe you want food security for yourself, or to live in a sustainable way, or even start a small business. Growing mushrooms brings together science, farming, and business in a special way.

When you get good at controlling the conditions and being clean, you will get steady crops and can make money. This is especially true if you focus on fancy or health markets. With some patience and care, you will find that growing mushrooms at home is both rewarding and interesting.

Ready to start? Zombie Mushrooms has kits, tools, and cultures for beginners. These can help you start your first harvest.


Citations

  • Letcher, T. M. (2020). Future Energy: Improved, Sustainable and Clean Options for Our Planet (3rd ed.). Elsevier.

  • Royse, D. J., Baars, J., & Tan, Q. (2017). Current overview of mushroom production in the world. In Edible and medicinal mushrooms: Technology and applications (pp. 5–13). John Wiley & Sons.

  • Stamets, P. (2005). Mycelium Running: How Mushrooms Can Help Save the World. Ten Speed Press.

  • USDA National Agricultural Statistics Service. (2023). Mushroom Production Report.

Mushroom cultivation

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