A 10-year-old Chinese elm with prior storm damage shows funnel-shaped mushrooms at the base after limb removal.
If ~¼ inch diameter with 3-5 black "eggs" inside cups, this is bird's nest fungus—a harmless decomposer growing on mulch, not the tree. Search "bird's nest fungus images" for confirmation.
These fungi break down organic mulch, benefiting soil health. They indicate good mulch decomposition, not tree disease. The tree's new growth at the pruning site confirms recovery.
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