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Wood chips have been promoted for use in habitat restoration projects. As the chipped wood decomposes it improves the soil structure, permeability, bioactivity, and nutrient availability of the soil. The micro-organisms that decompose wood chips require nitrogen in amounts greater than are available in the wood chips alone. If additional nitrogen is not mixed with the wood chips, the micro-organisms will get the nitrogen they need from the soil, competing with plant roots for the nitrogen available in the soil. This is why bark mulch works to keep weeds down.
Most of the material you place in your backyard compost pile is high in nitrogen. Food waste and lawn/garden waste are the two most common ingredients of backyard compost piles, and both are high in nitrogen. Wood chips can be added to a compost pile to provide a better carbon:nitrogen ratio. Wood chips, with their rigid structure, also enhance the flow of air through the compost since they are less prone to compact.
*For further information on wood chips and much please click HERE