How to Start a Profitable Onion Farming Business – Complete Guide

Onion farming is one of the most profitable agricultural businesses worldwide. Its scientific name is Allium cepa, and it belongs to the Amaryllidaceae family. Onions are always in demand, making this a great business opportunity for farmers and agripreneurs. In this article, we will discuss everything you need to know about onion farming, from selecting the right variety to harvesting and selling your onions.

Why Start an Onion Farm?

Onions are a kitchen staple, used in almost every household. Here is why they’re a great crop:

• High Demand – Sold in supermarkets, restaurants, and food industries.
• Good Profit Margins – Prices rise during shortages.
• Multiple Growing Seasons – Can harvest 1-2 times per year.
• Export Potential – US onions are shipped to Canada, Mexico, and Asia.
• Low Startup Costs – It doesn’t require expensive machinery.

Market Potential:

• The US produces over 3 million metric tons of onions yearly.
• Top states: Washington, California, Oregon, Georgia, and Texas.
• Organic onions sell for 2-3X higher prices.

7 Steps to Start a Profitable Onion Farm

1. Choose the Best Onion Varieties

Choosing the right variety affects yield and market value. Here are the top types:

A. Yellow Onions (Most Popular)

• Vidalia (Sweet Onion) – Grown in Georgia, high demand.
• Yellow Spanish – Good storage life; widely used in cooking.
• Walla Walla (Sweet Onion) – Famous in the Pacific Northwest.

B. Red Onions (For Salads & Fresh Markets)

• Red Wing – Deep color, long shelf life.
• Red Zeppelin – High yields, disease-resistant.

C. White Onions (For Mexican & Export Markets)

• White Granex – Used in salsas and processed foods.
• Southport White Globe – Classic storage onion.

Tip: Pick varieties based on your climate and market demand.

2. Land Preparation and Soil Requirements

Ideal Soil for Onions

• Well-drained loamy or sandy soil (avoids bulb rot).
• pH level 6.0-6.8 (test soil before planting).
• Avoid heavy clay soil (poor drainage = disease risk).

Land Prep Steps

• Plow & Till – Break up soil for good root growth.
• Remove Weeds – Prevents competition for nutrients.
• Add Compost/Manure – 10-15 tons per acre for fertility.
• Raised Beds (Optional) – Helps with drainage in wet areas.

Read: Is Soil Testing Important in Agriculture?

3. Planting Methods for High Yields

A. Direct Seeding (From Seeds)

• Best for large-scale farming.
• Sow seeds ½ inch deep, 2-4 inches apart in rows.
• Takes 90-120 days to harvest.

B. Transplanting (From Seedlings or Sets)

• Faster & more uniform growth.
• Start seeds indoors 8-10 weeks before transplanting.
• Plant seedlings 4-6 inches apart in rows.

Best Planting Times:

• Northern States (MI, NY, WA): Plant in April – May.
• Southern States (TX, GA, CA): Plant in Feb-Mar or Sept-Oct.

4. Irrigation and Fertilization Tips

Watering Schedule

• First 4 weeks: Keep soil moist (1-1.5 inches per week).
• Bulb formation stage: Reduce water to prevent rot.
• Stop watering 2 weeks before harvest for better curing.

Best Fertilizers for Onions

• Before Planting: 10-20 tons compost/acre + NPK (80-40-40 lbs/acre).
• During Growth: Side-dress with nitrogen (30 lbs/acre at 4 & 8 weeks).

Organic Option: Fish emulsion + bone meal.

5. Pest and Disease Control

Common Pests:

• Onion Thrips – Cause silvery streaks on leaves. ⇒ Solution: Spinosad or neem oil spray.
• Onion Maggots – Larvae eat roots & bulbs. ⇒ Solution: Row covers + beneficial nematodes.

Major Diseases:

• Downy Mildew – Yellow spots on leaves. ⇒ Solution: Copper fungicide spray.
• Botrytis Rot – Gray mold on stored bulbs.  ⇒ Solution: Proper curing & ventilation.

Prevention Tips:

• Rotate crops (don’t plant onions in the same field yearly).
• Use disease-resistant varieties.

6. Harvesting and Storage Techniques

When to Harvest?

• Tops fall over & turn yellow-brown (90-120 days after planting).
• Gently lift bulbs with a fork (to avoid bruising).

Post-Harvest Handling

• Curing – Dry onions 2-3 weeks in a shaded, ventilated area.
• Trimming – Cut roots & leaves, leaving a 1-inch neck.
• Grading – Sort by size (larger onions sell for more).

Storage Tips for Long Shelf Life

• Store in a cool (32-40°F), dry, dark place.
• Use mesh bags or crates for airflow.
• Best storage varieties: Copra, Patterson.

7. Marketing and Selling Strategies

Where to Sell Onions?

• Farmers Markets – Direct to consumers (higher profits).
• Grocery Stores & Restaurants – Bulk buyers.
• Food Processors – For sauces, soups, and frozen foods.
• Online (Amazon, Local CSAs) – Reach more customers.

Increasing Profits

• Sell organic onions (premium pricing).
• Offer value-added products (pickled onions, onion powder).
• Store & sell in winter when prices rise.

Costs and Profit Calculation (Per Acre)

Expense	Cost ($)
Land Preparation	$300−$500
Seeds/Seedlings	$400−$800
Fertilizers	$200−$400
Irrigation	$150−$300
Labor	$1000−2,000
Pest Control	$100−$300
Total Cost	2,150−$4,300

References:

• USDA Onion Production Guide
• National Onion Association
• University Extension Farming Resources

Final Thoughts: Onion farming in the US can be highly profitable with proper planning. Start small, focus on quality, and scale up as you learn.