Panaeolus cinctulus is probably the most important psychoactive species in the genus Panaeolus in Europe. It grows directly on top of dung and on pastures that have been heavily fertilised. It can also be found on trash heaps or on compost or straw on which mushrooms are commercially cultivated.

We have grown this species on a mixture of dung and straw. We were also able to cultivate this species on sterilised grass seed cased with a mixture of peat and vermiculite (the same substrate that is used for Psilocybe tampanensis and Psilocybe mexicana). Although the fruitbodies were smaller than those grown on dung the first flush on grass seed was much bigger.

The first picture shows the first flush on cased sterilised grass seed. The second image shows some mushrooms grown on a sterilised mixture of straw and dung. The difference in appearance is very obvious although the same strain was used for inoculation.
The mycelium of this species had a characteristic flaky appearance, especially on grain and agar (third and fourth picture). It does not hold the substrate together firmly like for instance Psilocybe cubensis. The mycelium also forms small sclerotia-like structures.

Growth parameters:

Substrate:
Dung, straw, compost, grass seeds.
Temperature:
colonisation/fruiting: 27-30°C / 24-27°C

source - www.mushmush.nl

Pictures at www.mushroomobserver.org