strange growth on peach tree trunk

Sherman Oaks, CA

Please help identify this growth on a peach tree in Los Angeles. Thanks!

Thumbnail by garden18
Contra Costa County, CA(Zone 9b)

Some sort of fungus.
I would remove it and see why it is growing there.
Is the wood behind this still healthy?
Is it in a spot where fallen leaves and other organic matter can build up? Such as the crotch of the tree? (Does not look like it)

Fungi live on dead and dying material. If the inside of the tree is rotting several different fungi can get started in there. When the fungi are ready to reproduce they often make some sort of growth outside the tree trunk.

Depending on how badly rotted the tree is it might be possible to clean it out and it would be OK. But if the rot is extensive then the tree is a hazard waiting to happen. It will break and fall over.

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