Mushroom farmers grow their fungi on top of a layer of peat moss, which is on top of specially-made compost. The mushrooms are turned into nutrient-rich soil or compost as a slow-release garden fertilizer. It's the lightweight, well-draining peat moss that provides a perfect medium for commercial mushrooms that are sold to gardeners and farmers. Peat moss is a common plant medium for houseplants of all kinds.
Some mushrooms grow naturally on moss that occurs in the wild. The bright yellow mushrooms known as witches' butter (Dacrymyces palmatus) grow on mossy logs. Witches' butter is named for its appearance, which resembles melting butter after it becomes water- or rain-soaked. Aleuria autantia mushrooms are shaped like cups. The vivid colors of the mushroom stand out against the moss-covered logs where they grow. Scarlet cup fungus, Sarcoscypha coccinea, also grows on moist, moss-covered logs.
Red hot milk cap mushrooms grow in sphagnum moss. The mushrooms are named for their red-brown cap. The stem of the mushroom is purplish in color. Devil's urn mushrooms are black in color, and named for their goblet-like shape. The central stalk grows in deep moss on top of buried or decayed wood.
Mushrooms are sold at grocery stores; they're a favorite pizza topping and a common kitchen ingredient. Some mushrooms are even considered costly delicacies, though they're just a type of fungus, too. But not all mushrooms are safe to eat. You should never harvest mushrooms for human consumption unless you are certain they are not poisonous. Remove mushrooms from areas where children and pets play to avoid mishaps.