NAICS 111411 Quarterly Industry Report
Mushroom Production
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 111411Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry profile for NAICS 111411 provides business owners, buyers, and valuation professionals with sector-specific benchmarks and market context for mushroom production operations. Additional data is drawn from Bureau of Labor Statistics[5].. Content is compiled from USDA NASS[3] mushroom production reports, Census Bureau[6] economic data, and SBA[7] regulatory filings to support informed valuation and transaction analysis.
Industry Definition & Overview
Mushroom Production (NAICS 111411) encompasses establishments primarily engaged in growing mushrooms under cover in controlled environments, including purpose-built mushroom houses, converted mines, caves, and indoor vertical farming facilities [1]. The U.S. mushroom industry generated roughly $1.09 billion in sales value during the 2023-2024 growing season, with total production volume of 659 million pounds [2]. Pennsylvania dominates national output, with Chester County's concentrated farming cluster producing nearly 200 million pounds annually and employing close to 9,300 workers, contributing an estimated $1.2 billion to the regional economy[3] including farm sales, employment, and supporting service industries [3].
Commercial mushroom production is a year-round, capital-intensive operation requiring specialized growing infrastructure, climate control systems, composting facilities, and spawn production capabilities. White button mushrooms (Agaricus bisporus) account for the majority of domestic production volume, though specialty varieties including cremini, portobello, shiitake, oyster, and maitake have captured growing market share driven by culinary trends and consumer interest in functional foods. Operations range from small specialty growers producing a few hundred thousand pounds annually to large integrated farms with multiple growing houses and proprietary composting operations[4]. The industry faces competition from imported mushrooms, labor cost pressures in the composting and harvesting phases, and rising energy costs for environmental controls that maintain precise temperature and humidity conditions throughout the growing cycle.
What's Included in This Industry
- White button mushroom farming (Agaricus bisporus)
- Cremini and portobello mushroom production
- Shiitake mushroom farming operations
- Oyster mushroom cultivation
- Specialty and exotic mushroom growing
- Mushroom spawn production and farming
- Maitake and enoki mushroom operations
- Other commercial mushroom cultivation
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Crop Production | 111 |
| Industry Group | Greenhouse, Nursery, and Floriculture Production | 1114 |
| NAICS Industry | Food Crops Grown Under Cover | 11141 |
| National Industry | Mushroom Production | 111411 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 111419 | Other Food Crops Grown Under Cover | Other food crops grown under cover including greenhouse vegetables and hydroponic operations that share controlled-environment agriculture techniques and infrastructure |
| 111998 | All Other Miscellaneous Crop Farming | All other miscellaneous crop farming operations that may include minor mushroom cultivation as part of a diversified specialty agricultural enterprise |
| 115116 | Farm Management Services | Farm management services providing operational oversight and consulting for commercial mushroom growing operations and controlled-environment farms |
| 325314 | Fertilizer (Mixing Only) Manufacturing | Fertilizer mixing operations that supply specialized composting materials and substrate ingredients for commercial mushroom growing operations |
| 111421 | Nursery and Tree Production | Nursery and tree production establishments that operate comparable controlled-environment growing facilities with climate management systems |
| 311942 | Spice and Extract Manufacturing | Spice and extract manufacturing operations that process dried mushroom products and mushroom-derived ingredients for food industry applications |
SBA Lending Summary
72
Total SBA Loans
$82.1M
Total Loan Volume
$1.1M
Average Loan Size
9 yrs
Average Loan Term
10.69%
Average Interest Rate
1,256
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[7] classifies Mushroom Production under NAICS 111411 with an annual receipts size standard of $4.5 million [4]. Operations at or below this revenue threshold qualify as small businesses for federal procurement preferences, SBA-backed loan programs, and agricultural support initiatives. The mushroom sector includes both small specialty growers and large commercial operations that may exceed this threshold, particularly in the concentrated Pennsylvania growing region. Eligible businesses can access SBA 7(a) loans[8] for working capital, equipment, and acquisition financing, while 504 loans[9] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 24 | $72.0M | $3.0M |
| 2 | Gulf Coast Bank and Trust Company | 16 | $7.6M | $473K |
| 3 | BayFirst National Bank | 8 | $1.2M | $150K |
| 4 | Manufacturers and Traders Trust Company | 16 | $1.2M | $73K |
| 5 | TD Bank, National Association | 8 | $200K | $25K |
Frequently Asked Questions
Common questions about this industry.
What types of mushrooms are included in NAICS 111411?
NAICS 111411 covers all commercial mushroom growing operations including white button mushrooms, cremini, portobello, shiitake, oyster, maitake, enoki, and other specialty and exotic varieties [1]. The classification includes both traditional growing-house operations and newer controlled-environment facilities. Industry U.S. Census Bureau[10] defines the scope as establishments primarily engaged in mushroom production, including spawn farming.
What is the SBA size standard for mushroom production businesses?
The SBA sets the small business size standard for NAICS 111411 at $4.5 million in average annual receipts [4]. Operations meeting this threshold can access federal small business contracting set-asides, SBA-guaranteed lending programs, and agricultural disaster assistance. Per SBA regulations[11], receipts are calculated as a multi-year average of gross annual income.
How large is the U.S. mushroom production industry?
The U.S. mushroom industry generated roughly $1.09 billion in sales value during the 2023-2024 growing season, with total production of 659 million pounds [2]. Per USDA NASS[3] survey data, there are roughly 186 active commercial mushroom farming operations nationwide, with Pennsylvania accounting for the largest share of production volume and value.
Why is Pennsylvania the center of U.S. mushroom production?
Chester County in southeastern Pennsylvania hosts the nation's largest concentration of mushroom farms, producing nearly 200 million pounds annually and employing close to 9,300 workers [3]. The region's dominance dates back over a century and reflects accumulated infrastructure including specialized composting facilities, spawn laboratories, distribution networks, and a skilled agricultural workforce. Per USDA NASS[3] state-level data, Pennsylvania's mushroom farming cluster contributes an estimated $1.2 billion annually to the local economy.
What are the key valuation drivers for mushroom farming operations?
Mushroom farm valuation depends on growing house capacity and condition, composting infrastructure, spawn production capabilities, climate control system efficiency, customer contracts with retailers and distributors, and workforce stability. Year-round production capability distinguishes mushroom farming from seasonal crop operations. Per USDA ERS[4] agricultural economics research, energy costs and labor availability are the two largest factors affecting operating margins and long-term enterprise value.
What capital investment is required to start a mushroom farm?
Commercial mushroom operations require substantial upfront investment in growing houses with environmental controls, composting yards, spawn procurement or production, and harvesting and packing infrastructure. Entry-level specialty mushroom operations may start with $100,000 to $500,000 in capital, while full-scale Agaricus production facilities can require several million dollars in infrastructure. The controlled-environment nature of mushroom farming means that facility condition and equipment age are primary determinants of replacement capital needs and ongoing operating costs.
How is the specialty mushroom segment growing?
Specialty mushrooms including shiitake, oyster, maitake, and lion's mane varieties have gained market share driven by culinary trends, restaurant demand, and consumer interest in functional and medicinal mushroom products. Small and mid-sized specialty growers have entered the market with lower capital requirements than traditional Agaricus operations, often selling through farmers markets, restaurant direct supply, and specialty retailers. The USDA Agricultural Marketing Service[12] tracks wholesale pricing data showing that specialty varieties command substantial price premiums over commodity white button mushrooms.
What are the main operating cost categories for mushroom farms?
Labor represents the largest operating expense, particularly for hand-harvested fresh market mushrooms where selective picking is required to maintain quality standards. Composting and substrate preparation costs are the second major category, followed by energy for climate control, spawn procurement, packaging materials, and transportation. Water and waste management costs associated with spent compost disposal are also meaningful line items. The industry has invested in automation technologies for environmental monitoring and selective harvesting, though hand labor remains dominant for premium fresh-market production.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [3]$1.2 billion to the regional economy nass.usda.gov
- [4]proprietary composting operations ers.usda.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]Census Bureau census.gov
- [7]SBA sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]504 loans sba.gov
- [10]U.S. Census Bureau census.gov
- [11]SBA regulations sba.gov
- [12]USDA Agricultural Marketing Service ams.usda.gov
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