Can I Get a Loan For Mushroom Farming? (Solved!)

Yes, you can get a loan for mushroom farming, how much you can get depends on where you live and what kind of mushroom farming operation you decide to start.

Mushroom loans fall under ‘Farm Credit’. It is the money-lending method that traditional farmers use to get started. Although applying for any kind of loan can be complicated, if you are a serious mushroom cultivator then getting a loan is a great way to expand your business.

What Is A Mushroom Farming Loan?

A Mushroom farming loan is a loan paid out by a farming association to help with start-up costs, such as inquiring land to cultivate and equipment to assist in the growing process. Loans can either come in a package or piece-meal.

Package loans are great for people who have nothing to begin with, and need to start their business from the ground up. Piece-meal loans are for buying expensive equipment or additional resources for mushroom businesses that are already in operation.

What Is The Difference Between a Mushroom Farming Loan and a Business Loan?

The main difference between a mushroom farming loan and a regular business loan is that mushroom farming loans fall under the category of ‘agricultural lending’ whereas business loans borrow money from a bank or a private firm.

Agriculturalists can borrow money from banks, but banks are hesitant to give out farming loans. Therefore farming loans are usually government-issued, or come from an agricultural association that has a unique understanding of the business of farming.

Some banks do have separate divisions dedicated to agriculture and fishing lending. Where you decide to apply for your loan depends on your needs and your ability to demonstrate the likelihood of repayment.

How Much Money Is Required For Mushroom Farming?

Depending on how large your operations are, mushroom farming can cost you anywhere from $3,000 to $10,000.

If you want to set up a small operation in your backyard, and only plan to farm for yourself and to sell extra stock to friends, family, or small farmers’ markets, then you can get started for a few hundred dollars.

If you wish to sell commercially, then you will need to invest a few thousand dollars. You will need land to grow the mushrooms, and acquire any equipment for cultivation. You may also need to apply for permits and health and safety licensing before your operation can even begin. 

These requirements vary from state to state, but the best thing you can do is to research what you need thoroughly before making any financial commitments.

Does Mushroom Farming Require a Business Plan?

Any good business requires a business plan. A business plan is your road map to success.

Not only is developing a business plan good for you, but it is also necessary if you intend to attract any investors or apply for any start-up loans.

A good business plan for a mushroom farm will take into account all the details. It will outline initial start-up costs and balance them out with expected returns. The business plan will include labor costs, resource management, seasonal changes, fluctuation in market prices, and demand vs sales projections.

No business plan is bulletproof, nor is it a guarantee of success. But a good and realistic business plan does increase your chances of success and dramatically decreases the likelihood of you investing money and time in a business that is doomed to fail.

How Much Does a Mushroom Farmer Make Each Year?

An independent mushroom farmer who has knowledge and expertise in the cultivation of popular mushrooms can make anywhere between $38,000 and $44,000 per year.

This is the standard salary of a mushroom farmer who is employed by an established business. Mushroom farmers that grow their own mushrooms on their own land can make significantly more or less than this figure. 

The salary of mushroom farmers works the same as any other industry, the more knowledge and experience they have, the more money they can demand. Mushroom farmers who work for themselves are at the mercy of market prices and the success of the crop.

Should I Grow Mushrooms Indoors or Outdoors?


Outdoor cultivation is relatively straightforward and cheap. If you have a backyard you can prepare the soil for under $100 using compost and buying mushroom spores online. The key to this method is in the timing, you want to plant your spores a season before they are expected to grow. 

You must also hope that the seasonal weather conditions remain stable and the mushrooms will do all the rest. You must also bear in mind that you can only grow mushrooms once a year using the outdoor method.


Indoor cultivation is a little trickier but far more reliable than seasonal growing. Indoor cultivation requires you to dedicate a room or greenhouse to your project and you can spend anywhere between $1000 and $3000 setting up the room to simulate the ideal outdoor environment.

This is only as complicated as the mushroom you wish to grow. Morel mushrooms are notoriously tricky to grow indoors because they are a sensitive mushroom that does not always respond to simulated environments. White button mushrooms, however, are far easier to cultivate indoors but do not sell for as much.

With indoor cultivation, you can grow mushrooms all year round. You are also less likely to see crop failures due to unexpected weather changes.

How Do I Set Up A Small Scale Mushroom Farm?

Setting up a small-scale mushroom farm is the best place to start for novice growers. All it takes is a few hundred dollars and a little perseverance.

Gather Your Spawn

First, you will need to acquire mushroom spawn. You can do this yourself by purchasing a fresh sample of the mushroom of your choice and extracting the spores in a mixture of non-chlorinated water, molasses, and salt – or you can buy inoculated spawn online.

Prepare the Substrate

Prepare your soil using woodchips, sawdust, and compost. Mix well with the soil and let it sit for a few days before planting the spawn.

You can also add wood ash for good measure.

Prepare a Room for Incubation

Layer the spawn within the soil and Incubate your mixture. You will need a completely darkened room, and use a dark light if you need to check on your mushrooms. Be sure to keep the room at around 78 degrees F and be careful not to let any heat escape the room through cracks or open doors.


After a week your mushrooms should start to fruit. Adjust the humidity to 60-65 degrees and wait another week for them to mature.