The invention relates to an organic fertilizer with the effect of controlling crop diseases and pests and a production method or the organic fertilizer. The organic fertilizer is prepared from the following raw materials in parts by weight: 25-30 parts of leaves of shrubby baeckea, 18-22 parts of cigarette powder, 10-15 parts of tea bran, 3-5 parts of derris trifoliata herbs or roots, 20-25 parts of filter mud of sugarcane, 3-7 parts of quicklime powder, 15-25 parts of yeast liquid, 0.4-0.7 part of a bacillus subtilis preparation and 0.4-0.7 part of a bacillus mucilaginosus preparation. The organic fertilizer with the effect of controlling crop diseases and pests produced by the method has various functions of controlling insects, controlling diseases, promoting growth, regulating, improving stress resistance of crops, increasing sugar agricultural products, improving soil and the like for crop planting. By applying the organic fertilizer, soil pests can be controlled, soil-borne diseases are prevented, nutrients can be balanced, soil environment is improved, crop growth is promoted, crop yield and quality are improved, and the purpose of increasing both production and income is achieved.