Wouldn't it become more expensive IF there was an easy, cheap way to transport the material?

I would think that there would be far more potential sellers of cellulose than there would be ways to transport it, at least until bulk transportation is available in the numbers needed. When/if such transportation becomes available, the cellulosic ethanol plants should (in theory) be the primary transporters of the material, they could effectively set transportation prices, and use that control to ratchet feedstock prices downward.

Farmers are no longer locked into unfavorable grain markets as they once were. Grain has wheels and can seek out the highest price. I do not foresee every farmer updating to equipment necessary to move this bulk... until a proven market is in place. Until the feedstock can be moved as easily as grain, those that want to sell bulk are going to have to live with whatever the local plant wants to pay.