Strange white fungus in soil

Hi,

I've been digging over a bed that I was planning to use for growing vegetables. As I was preparing it I found that about a quarter of the bed has what looks like white fungus under the surface (see below).



It smells a bit musty and the ground seems a bit drier where the white substance is found. Also the plants on this side of the bed seemed a bit smaller than on the other side.

I couldn't see any insects in the white fungus.

Does anyone know what this could be? I am worried now that it is not safe to grow vegetables in this bed.

Thank you for any advice.

Jenny

 

I get this in my garden sometimes.
Its fungal, but never found it to be a problem.

My guess, and it's only a guess, is that it is a fungus that lives on dead wood as I've found it near decaying fence posts.
Could even be mushrooms.