The Mushroom Side Hustle That Generates $2,000 a Month and Purchased a 70-Acre Farm - Side Hustle Nation

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      Imagine transforming an unused closet into a farm, a storage facility, and even managing 70 acres of land. This is approximately the journey that Kyle Beaver followed. He operates Ten Mile Mushrooms in rural Pennsylvania and runs Pro Grow Club, cultivating gourmet and medicinal mushrooms, including oyster, lion's mane, and reishi.

      Before venturing into mushrooms, Kyle spent two years selling stuffed pretzels from a food truck at state fairs in Pennsylvania. Observing how people would travel three hours just for a pretzel shaped his vision for his own business: something niche, that wasn't available nearby, and could be managed in a compact space.

      A Google search for businesses suitable for small spaces led him to a mushroom cultivation resource from the UK. Nearly ten years later, that inquiry has evolved into a multi-six-figure business.

      Tune in to Episode 753 of the Side Hustle Show to discover:

      - How to start cultivating gourmet mushrooms for just $300

      - Where to sell mushrooms and their market value

      - How a $1,000/year farm can help you secure a $600,000 land loan

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      How Kyle Discovered the Mushroom Business

      Kyle wasn't initially looking for mushroom opportunities; rather, he sought businesses he could manage in limited space. The UK resource he found detailed potential earnings per square meter per year, which piqued his interest, especially since no one locally was cultivating these mushrooms.

      He checked local farmers' markets and found no competition, not even in nearby supermarkets, which still do not stock gourmet mushrooms today. Kyle specializes in wood-loving species found in the wild, such as:

      - oyster

      - lion's mane

      - reishi

      - other medicinal types featured in mushroom coffee

      “Nobody’s doing this in the area. I haven’t even heard of these mushrooms," he remarked.

      Starting Costs for a Mushroom Growing Side Hustle

      The initial costs are surprisingly low compared to many agricultural ventures.

      - Kyle's actual startup expenses totaled $300 for straw and poly tubing, along with oyster mushrooms grown in a spare room without any fans or cooling systems.

      - Setting up for farmers markets cost around $200-300 for a tent, table, cash box, and a small business insurance policy (usually around $1 million and affordable).

      - A comprehensive grow-and-sell setup requires a couple of thousand dollars.

      He started with no funds and no credit. His recommendation is to gain some experience with a few grows before investing in a dedicated grow room—a closet, spare room, or porch is perfectly adequate to get started.

      Potential Earnings from Mushroom Cultivation

      The grow tent behind Kyle during our conversation measures 4 square feet and yields 16 pounds of mushrooms every two weeks, and it doesn’t even have shelves yet.

      - Retail at farmers markets: $24–$30 per pound for fresh mushrooms, sold in half- and quarter-pound packages.

      - Wholesale to restaurants: $10–$12 per pound, providing roughly half the profit margin.

      - For each grow block: a $10 block produces 2–4 pounds, generating $60–$80 in retail revenue.

      This results in over a 75% gross margin on the cost of goods. By comparison, Kyle notes that an acre of corn can result in a negative financial return of $150. Specialty mushrooms are among the few crops where a genuinely small farm can still generate a sustainable income.

      Flushes and Yields Explained

      Grow blocks typically provide 2 to 3 successful flushes or growth cycles, with the first flush being the largest. Most commercial growers just harvest that initial flush. After harvesting, another two-week waiting period is required for new growth, which can lead to congestion in a small growing area.

      If space is constrained, spent blocks can still be useful; bury them in a garden to get an extra pound or two. Kyle also cautioned against the so-called “infinite mushroom hack” found online, where mushrooms are regrown from scraps repeatedly. Each regrowth dilutes the mushrooms' genetic strength. Instead, commercial growers start anew every week, allowing Kyle to depend on a consistent yield of 50 pounds each week.

      Where to Sell Mushrooms: 4 Sales Channels

      A small mushroom farm can use several main sales channels:

      - Farmers markets – commanding the highest price per pound

      - CSAs – subscription boxes for local produce

      - Direct-to-consumer – online sales of kits