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Does anyone have any idea what would cause this? Will it ruin my grass? I recently planted new grass and covered the seed with mushroom/manure compound. Would that cause this to happen? It is underneath the grass on the soil.
If you have been keeping ground fairly moist or have had plenty of rain the wet combined with the rich organics are causing the mold/mildew. Could be fungus. I think I would lightly sprinkle some baking soda on it to kill it but I do not believe it will hurt the grass. Just will begin to give off that rotting smell. The backing soda should kill it and neutralize the odor.