This invention relates to a method for preparing casing material for mushroom production including the steps of providing a body of plant parenchyma tissue extracted from a plant source; mixing the body with water to provide a starting mixture; and allowing the starting mixture to compost to form the casing material. The method may include the further step of adding a decomposition enhancer to the starting mixture. The invention further relates to casing material prepared in accordance with the method and to a method of producing mushrooms using the casing material.