Farm Type Guide
Mushroom Farming in New York
Shiitake grown on logs in the woods, and oyster, lion’s mane, and other mushrooms grown indoors. What it takes to get started, the rules for selling, and the help available to veterans.
The Industry at a Glance
- Fewer farms are growing mushrooms, but the ones that do are selling more. New York had 117 farms selling mushrooms in 2017 and 85 in 2022, while mushroom sales roughly doubled, from about $2.1 million to about $4.3 million.
- A small number of New York farms, six in both 2017 and 2022, also sell mushroom spawn, the starter culture growers use to inoculate logs and blocks.
- There are two main ways to grow. Log-grown shiitake is raised outdoors in shady woods on oak, sugar maple, and other hardwoods. Oyster, lion’s mane, and other specialty mushrooms are mostly grown indoors on sawdust blocks or straw.
- Demand is strong for growers who can keep quality high. In a 2021 national survey of specialty mushroom growers, 64% said they had more demand than they could supply.
New York has fewer mushroom farms than it did five years ago, even as sales have grown, so there is room for new growers. If you’re a veteran interested in growing shiitake on logs or oyster mushrooms indoors, talk to us about joining the effort to grow mushroom farming in New York.
Log-Grown Shiitake and Forest Mushrooms
- Shiitake logs are usually 4 to 6 inches across and 3 to 4 feet long. Oak and sugar maple are the best woods. Evergreens, white ash, and fruit woods are not recommended.
- This is a slow crop. After you drill and fill the logs with spawn, the fungus needs 8 to 18 months to grow through the wood before the first harvest. Logs then need year-round shade of 75 to 100 percent.
- A good log fruits for three to four years. You can force a flush by soaking the logs for about 24 hours, then let them rest 6 to 8 weeks before forcing them again.
- In a Cornell study of beginning Northeast growers, logs cost about $4.74 each to set up and took just over an hour of work per log, more than half of it spent felling trees. Ten of the 15 farms that turned in full records made a profit, averaging about $5 per log per season.
- Cornell’s sample budget for adding 100 logs a year, up to 500 logs, expected profit in year two and over $4,000 in profit in year five. If you have a woodlot, a DEC Cooperating Forester can help you plan which trees to cut.
Indoor Grow Rooms
- Oyster mushrooms are the most common indoor crop and a common place to start. Shiitake, lion’s mane, chestnut, king trumpet, and maitake are also grown indoors commercially.
- Most indoor mushrooms grow on sawdust or wood pellets mixed with a nitrogen supplement. Straw also works for oysters, but Cornell suggests cutting your expected yield in half if you use it.
- Inoculated blocks incubate for 4 to 8 weeks at about 65 to 70°F, then move to a fruiting room where you control temperature, humidity, light, and airflow. Indoor crops turn around much faster than logs.
- A grow room can be a basement, an old barn or outbuilding, a shipping container, or a warehouse. Buying ready-made blocks saves labor but takes more cash and ties you to a supplier. Making your own takes more equipment and work.
- Growers surveyed by Cornell estimated net income of $1 to $3 per square foot of growing space, but Cornell is still checking those numbers. Contamination is the main risk, so plan for careful cleaning and sanitation.
Selling Rules and Markets
- In New York you can sell raw cultivated mushrooms without a permit. If you dry mushrooms in a dehydrator or make other products, you need an Article 20-C food processing license and a commercial kitchen.
- Cultivated mushrooms fall under the federal Produce Safety Rule once your average produce sales over the past three years pass the FDA limit (about $35,000 as of 2025), unless you qualify for an exemption. Any water that touches the mushrooms from pinning on must be safe to drink.
- For dried mushrooms and powders, the Cornell Food Venture Center can review your process so you know the product is safe and stable before you sell it.
- Wild-foraged mushrooms are much harder to sell legally. Cornell’s guide says each wild mushroom must be inspected by an approved identification expert before sale, and that state health rules did not yet allow sales to restaurants and stores when it was written. Check with Agriculture and Markets and your county health department before you sell any.
- In Cornell’s shiitake study, restaurants bought 46% of what growers sold, followed by direct sales, farmers markets, and grocery stores. Log-grown shiitake sold for $10 to $16 a pound, compared with $4 to $8 for conventional indoor shiitake.
Organizations
- The Cornell Small Farms Program runs a specialty mushroom project that is a national leader in this work. It offers free guides, a plain-language guide to New York selling rules, and regional mushroom farmer gatherings. Visit the project.
- Cornell Cooperative Extension county offices host hands-on shiitake workshops where beginners can inoculate logs and learn log yard care. Find your county office on our regional resource pages.
- NOFA-NY is New York’s organic farming association, with farmer events and help with organic certification, one of the certification options for mushroom growers. See our NOFA-NY page.
- Northeast Forest Farmers Coalition is a regional network of farms, universities, and nonprofits working to grow forest farming in the Northeast, including forest-grown mushrooms and medicinal plants. Membership is free and includes workshops, online resources, technical assistance, and chances to connect with other growers and buyers.
- North American Mycological Association is a national nonprofit for amateur and professional mycologists with more than 90 affiliated local clubs. It is a good place to learn, with a cultivation committee, growing resources, webinars, and an annual foray.
- Mushroom Council is the national research and promotion board for fresh mushrooms. It mainly serves larger growers, but its industry research, retail data, and marketing tools can help smaller farms understand the market.
Training and Help
- Cornell’s online course BF 151: Outdoor Mushroom Cultivation covers logs, stumps, and woodchips. Live webinars run Tuesday evenings from November 3 to December 8, 2026, and are recorded.
- BF 153: Indoor Specialty Mushroom Production covers grow rooms, substrates, and a mini business plan, with webinars from February 23 to March 30, 2027. Both courses use a sliding scale of $199 to $349, and scholarships are available to New York residents.
- The free Best Management Practices for Log-Based Shiitake Cultivation guide walks through every step from cutting logs to marketing.
- Veterans can also learn whole-farm planning through Farm Ops and Armed to Farm, and SUNY Reconnect may cover tuition for an agriculture degree.
Benefits for Veterans
- Ask your FSA office whether your mushrooms can be covered under NAP. Veterans pay no service fee and get 50% off buy-up premiums.
- FSA microloans of up to $50,000 can help pay for spawn, drills, a grow room, or a cooler.
- Veterans get priority and higher cost-share in EQIP and CSP. If your logs come from your own woodlot, ask NRCS which conservation practices fit your plans for it.
- File form CCC-860 (veteran certification) with FSA to get these benefits, and label your mushrooms with the Homegrown By Heroes veteran brand.
How to Get Started
- Start small. Inoculate a few dozen logs at a CCE workshop or try a handful of oyster blocks before you buy equipment.
- Expect to wait. Shiitake logs take most of a year or more before the first harvest, so many growers add indoor oysters for faster income.
- Read Cornell’s guide to New York selling rules before you sell, and stick to fresh, cultivated mushrooms until you have a licensed kitchen.
- Get a USDA farm number, file form CCC-860, and line up a few restaurants or a farmers market before you scale up.
- Talk to us to connect with other veterans and growers already doing the work.
Sources: Cornell Small Farms Program Specialty Mushrooms Project; Best Management Practices for Log-Based Shiitake Cultivation in the Northeastern United States; NYS Department of Agriculture and Markets; USDA FSA and NRCS; USDA NASS Census of Agriculture.
