This guidance document, inspired by frequently asked questions of Cornell Mushroom Educators, has been developed to assist mushroom growers and other stakeholders with navigating relevant regulations, policies, procedures, and best practices to enhance compliance. This document aims to serve as a reliable reference to support efficient and informed decision making.
The creation of this document was a collaborative approach by Cornell Small Farms Program (CSFP), Cornell Cooperative Extension, Produce Safety Alliance, and the Cornell Food Venture Center (CFVC). It has been reviewed by the NYS Department of Agriculture and Markets (NYS AGM) Division of Food Safety and Inspection.
This document focuses on cultivated mushrooms which refers to mushrooms grown where the grower inoculates a substrate (e.g., logs, beds, straw) with a known strain or species of mushroom spawn. A dedicated space is created, whether outdoors and/or indoors, for the purpose of fruiting mushrooms. This document does not discuss wild harvested mushrooms (mushrooms where no inoculation has occurred and are instead foraged in the natural environment) as different and separate regulations cover them. Below are answers to frequently asked questions with links to relevant regulation.
Frequently asked questions about cultivated mushroom regulation
1) Are there any specific certificates or regulations when it comes to selling cultivated mushrooms in NYS?
A grower can sell raw agricultural, cultivated specialty mushrooms as food without a permit, just as with any other type of produce. In other words, a grower can sell raw, cultivated mushrooms the same way they would sell raw broccoli or any other raw agricultural commodity.
In New York State, any food that is sold must be unadulterated (NY Agric & Mkts L Article 17). This means growers must manufacture food using best food safety practices and in sanitary conditions. Furthermore, as cultivated mushrooms (including Agaricus and all types of specialty mushrooms such as oyster, shiitake, and lions mane) are considered raw agricultural commodities (21 CFR § 112.1), their production, harvest, handling and natural dehydrating are covered by the state’s Produce Safety Regulations (1 NY Comp Codes Rules and Regs § 273.1). Other types of processing are covered under AGM Law Article 20c.
A grower may be subject to Title 21 CFR Part 112 (Produce Safety Rule) if their average annual monetary value of produce sold the previous 3-year period exceeds $33,297 (adjusted every April for inflation) AND they don’t qualify for, or choose to claim, a qualified exemption.
2) Are there regulations about what water I can use to soak mushroom bolts (logs) in for outdoor production?
New York State law requires produce to be grown in sanitary conditions (NY Agric & Mkts L Article 17). In outdoor log production, a water source is necessary for forced fruiting (shocking) and for maintaining a threshold moisture level in the logs. Best practice is to use a clean water source; municipal water sources tend to have the lowest risk of microbial contamination. Water assessments (21 CFR § 112.43) are recommended for all water used in mushroom production and legally required for agricultural water (any water that comes into contact with the fruiting body of a mushroom). Water assessments evaluate your water system for risk of contamination from biological, physical, and chemical contaminants. Water regulations begin at pinning (once the mushroom begins to form and water comes in contact with the fruiting body). Any water that comes into contact with the fruiting body must be potable (21 CFR § 112 Subpart E).
3) What counts as “processing” for specialty mushrooms? What regulations govern processing?
Mushrooms are generally treated in the same category as other produce. Beyond harvesting, any cutting, slicing, or modification from its original form is considered processing. Mushrooms are commonly processed into value-added products and sold as a food or dietary supplement. The CSFP offers additional guidance on mushroom value-added products and the information below describes the regulatory landscape.
Whether the product is considered a food or dietary supplement, it all comes down to the label. Dietary supplements standards are not regulated by New York State. However, they are regulated by the U.S. Food & Drug Administration (FDA). As of 2025, regulation 21 CFR 111 is in effect, and requirements are more strict than they used to be. Among other things, if you are trying to sell a dried and powdered mushroom product as a dietary supplement, you must state its identity, purity, strength and composition; and the validity of the test(s) you use to prove them. Your product does not need a label that says “dietary supplement” to fall under these regulations; any language or graphics on the label that suggest the product will help or improve health will result in the product being considered a supplement. These federal rules are new, and we don’t know how they will be enforced or applied to small scale production. We recommend you adhere to them as closely as possible.
Common types and processes of mushroom value-added products
In addition to labels, it is worth noting there are different regulations if you grow the mushrooms and process them on farm versus buying the mushrooms and processing them off farm, see 1 NY Comp Codes Rules and Regs § 273.1 and AGM Law Article 20c . Below we discuss common types and processes of mushroom value-added products.
Dehydrating
Mushrooms dried using “natural” methods (sunlight) are not subject to licensing by NYS AGM. Natural means no fans or mechanisms to assist in drying. There are concerns with natural drying method as the sun is not a reliable source at most times of the season in New York State. Growers wanting to dry in the sun must be prepared to finish in a dehydrator. This essentially means that, unless a grower can develop a reliable solar drying method that can fully dry mushrooms in 6 – 8 hours, they will be required to obtain a NYS AGM Article 20-C Food Processing Establishment license, an approved process and access to a commercial kitchen.
Mushrooms that are dried in a food dehydrator or using any other equipment are subject to regulation. Establishments conducting such operations, with an end product intended to be used as a food/food flavoring must conduct such operations in a commercial space or a licensed commercial kitchen (Guidance for Shared Use Kitchens- NYS AGM) and must obtain a NYS AGM Article 20-C Food Processing Establishment License. License applications can be found on the NYS AGM Food Business Licensing webpage.
In addition, you may be required to obtain a process review for your product. A process review of your new product can be obtained by contacting an approved process authority or the CFVC.
If you chose to utilize the CFVC, you must send a 2oz sample of the dried product and requisite forms to the CFVC for it to be tested and evaluated for safety. If it is safe and stable, the CFVC will issue you with a Scheduled Process for your dried mushroom product. If you need help with the forms or have questions please contact them. Once you have the scheduled process for your product, you may process it for sale.
Your establishment is subject to food safety inspections and must comply with all applicable rules and regulations.
Powders
Many producers grind their dried mushrooms into a powder and sell it as a food or dietary supplement. Prior to drying your mushrooms for powdering, a kill step is required to surface-sterilize them. Common steps include: a chlorine (20-100 ppm Cl-) or H2O2 solution dip followed by 5-10 minute dwell time then potable water rinse, or 5 minute dip in 180°F water. Sterilized mushrooms can then go into a dehydrator.
Tinctures
Dried mushroom powders can also be further processed into value added products such as tinctures. Here, water or alcohol is used to extract compounds from the powder. If the tincture is intended to be consumed by itself, it is regulated as a food or beverage, and regulation depends on the solvent base.
If your tincture has less than 0.5% ABV, it is regulated as a food and will require the same sanitation procedure as powders above, or other pathogen controls depending on how the tincture is made. If the alcohol content is greater than 0.5% ABV, the tincture is automatically under the regulatory structure of the State Liquor Authority (in New York State) and the Alcohol and Tobacco Tax and Trade Bureau (TTB), and subject to their label requirements and taxes. This is in addition to the Food Processing license. To avoid label requirements and taxes, the alcoholic tincture must taste foul so that no one would willingly drink it by itself (27 CFR § 19.5).
If your tincture is intended to be added into another food/beverage for health benefit, it is regulated as a supplement and will fall under the same regulations as described above.
Prepared: Spring 2026
Prepared by: Connor Youngerman, Lori Koenick, Don Gasiewicz, Yolanda Gonzalez, Robert Hadad, Elizabeth Bihn, and Elizabeth Sullivan.
Reviewed by: NYS AGM
Resources:
- Cornell Small Farms Program Specialty Mushroom Project
- Produce Safety Alliance
- Cornell Food Venture Center
- New York State Department of Agriculture and Markets: Division of Food Safety and Inspection units
- CCE Harvest NY
- CCE Cornell Vegetable Program
- CCE Wyoming County
Note: This is a guidance document for public information purposes only. Any approved expert is solely responsible and liable for the safety and accuracy of all mushrooms sold and consumed. The Cornell Small Farms Program, Cornell Cooperative Extension, NYS AGM, and any affiliated organizations, employees, officers and representatives mentioned in this document are not liable for any injury or damages resulting from any misidentification of potentially toxic species or allergic reactions that may occur.
