Finding mushrooms in your hay suggests that the storage conditions for your hay are not very good. Any hay that is moist enough to grow mushrooms is too wet and may have other mold or fungi that could be harmful to your horses. We would recommend that you not feed this hay with the mushrooms, and you should be very selective when you choose hay to feed to your horses. Hay needs to be free of all dust, mold, and other potentially harmful things. Moisture content should not exceed 17% for good storage and not mold. Bottom line: Don't feed the poor hay with the mushrooms.