Forest-Cultivated Mushroom Production for Pacific Northwest Diversified Farms and Startups, Phase II

Project Overview

SW26-001
Project Type: Research and Education
Funds awarded in 2026: $349,985.00
Projected End Date: 08/31/2029
Grant Recipient: Washington State University
Region: Western
State: Washington
Principal Investigator:
Justin O'Dea
Washington State University
Co-Investigators:
Patrick Shults
Washington State University, ANR Extension Unit
Dr. Eric Jones
Oregon State University

Commodities

  • Miscellaneous: mushrooms

Practices

  • Crop Production: agroforestry, crop improvement and selection, cropping systems, food processing, forest farming, forestry, high tunnels or hoop houses, season extension, shade cloth, varieties and cultivars, water management
  • Education and Training: decision support system, demonstration, extension, farmer to farmer, mentoring, networking, on-farm/ranch research, participatory research, technical assistance, workshop
  • Farm Business Management: budgets/cost and returns, business planning, feasibility study, new enterprise development, value added
  • Natural Resources/Environment: other
  • Production Systems: other
  • Sustainable Communities: local and regional food systems, new business opportunities

    Proposal abstract:

    Agriculture faces daunting economic sustainability challenges. New and beginning farmers face formidable startup capital demands and barriers to land access, and generational farms are often pushed to evolve and adapt to improve sustainability and resilience to shifting markets and production contexts. Agriculture benefits from reduced-risk pathways to expand economic opportunities and new generations of farmers are key to future food security. In 2019, we began researching Japanese forest-cultivated mushroom (FCM) production systems in response to this need in the western Pacific Northwest (PNW) region, where urbanization exacerbates the aforementioned challenges, but where there is also an abundance of farm/food market opportunities.

    These systems are scale-appropriate to smaller-scale farms producing a wide array of crops and limited-acreage food production startups. Equipment, infrastructure, capital, acreage, and input demands are all relatively low for an agricultural enterprise. They are likewise resource-use efficient, low impact, and do not compete with other crops for high-value farmland. They instead open new opportunities for food production within PNW forests. Uncommonly low barriers-to-entry are key to FCM systems being a feasible pathway for upcoming generations of farmers to onboard into food production, while also being a relatively low-risk economic opportunity for existing western PNW farms looking to evolve and expand their crop palette.

    The first phase of this long-term WSARE project (2022) had notable successes and impacts. Key refinements to PNW forest-cultivated mushroom production systems were made, connections built with mushroom production in Japan opened new perspectives and opportunities, and 17 PNW producers-initiated shiitake FCM enterprises with help from the project's unique Extension mentorship program. Growers continue to report that PNW mushroom markets remain notably undersaturated, that Extension mentoring has provided key insights towards FCM success, and that FCM systems have added a unique, worthwhile, enjoyable component to their farm business. Demands for Extension programming on these systems have also remained consistently high. This second phase will build on the grower-informed successes of the first phase, expand trials of FCMs, continue mentorship of a growing network of FCM growers, and add new collaborations and experiments focused on steps towards scaling-up and expanding PNW FCM production options.

    The Phase II objectives will continue to optimize commercial PNW shiitake FCM production systems via 1) refined long-term FCM production estimates, and 2) new trials of untested substrate tree species and novel shiitake strains sourced from Japan and an emerging PNW spawn supplier. Secondly, the objectives target system innovations to scale-up shiitake production with reduced labor demands and streamlined tree/substrate sourcing, and expand production into shaded, forested hoophouse production of shiitake and three other species of edible mushrooms. The objectives also will also continue to poise the project for impact via expansions in demonstration and hands-on FCM learning opportunities, direct mentoring of growers in FCM system establishment, and training of FCM peer-mentors. Project efforts are expected to further successful adoption of FCM systems throughout the PNW, facilitate expansive market opportunities supporting agricultural sustainability and resilience, and simultaneously bolster local food systems, attendant mushroom production suppliers, and value-added processor businesses throughout the region.

    Project objectives from proposal:

    Research objectives:

    R1) Assess longer-term shiitake forest-cultivated mushroom (FCM) yields from different strains and substrates to inform yield expectations and enterprise budgets for the PNW (Y1-Y3)

    R2) Expand shiitake strain selections on proven PNW substrate species to broaden production options (Y1-Y3)

    R3) Refine shiitake bolt rehydration time periods and methods for enhanced productivity management and water conservation (Y2, Y3)

    R4) Innovate shiitake production equipment and infrastructure for scaling-up FCM production capacity and economy (Y1-Y3)

    R5) Refine production economy estimates to better reflect commercial FCM production circumstances in enterprise budgets (Y2, Y3).

    R6) Trial a forested, shaded hoophouse production space and a bucket production system for expanding FCM production to four other edible mushroom species plus extended-season shiitake (Y1, Y2)

    Education Objectives:

    E1) Mentor at least 15 beginning FCM producers for successful FCM enterprise development, development of FCM peer mentors, and a grower network supporting further PNW FCM business growth (Y1-Y3).

    E2) Expand FCM program delivery capacity with scaled-up research, demonstration, outreach opportunities to support growth of PNW FCM production (Y1-Y3)

    E3) Develop timber supplier specialization and streamlined opportunities for improved timber access for PNW FCM growers (Y1-Y3)

    E4) Expand grower education on post-harvest FCM management and producing dried shiitake to scale-up market capacity and opportunities for growers (Y1-Y3)

    E5) Produce educational materials on commercial FCM systems as a resource to support future grower adoption of FCM production (Y1-Y3)

    Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and should not be construed to represent any official USDA or U.S. Government determination or policy.