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 Types of Compost
Compost: To break down organic waste into a humus that can be reused as a beneficial nutrient rich resource of organic soil amendments.
There are several ways to compost, all with advantages and disadvantages.
 Vermicomposting - This is most beneficial for composting food waste. Along with redworms, this includes composting with bacteria, fungi, insects, and other bugs. Some of these guests break down the organic materials for the others to eat. Redworms eat the bacteria, fungi, and the food waste, and then deposit their castings. Oxygen and moisture are required to keep this compost healthy. At times this compost may heat up due to the bacteria activity. When managed properly the heating process will be short and warm. This compost should not smell, but if it does it is likely there is too much moisture or your compost has become compacted. You need to aerate (or turn) your compost to get rid of the excess moisture.
This is a medium maintenance compost since you need to feed your redworms and monitor the conditions. Redworms are good for producing vermicompost which is nutrient rich semi composted mulch with redworm castings. The longer you wait the more your compost will eventually become pure castings.
 Aerobic composting - To compost with air. High nitrogen waste (like grass clippings or other green material) will grow bacteria that will create high temperatures (up to 160 degrees, you can see the steam in the picture). Organic waste will break down quickly and is not prone to smell. This type of composting is high maintenance, since it will need to be turned every couple days to keep air in the system and your temperatures up. It is also likely to require accurate moisture monitoring. Often with the high temperature this type of composting will create dry pockets in the center of you compost. The debris breakdown will slow considerably when it becomes dry or cool. If you just throw a hose on the compost the water will likely go around the dry area. To solve this problem turn your compost while you are watering.
This type of compost is good for large volumes of compost. Once it is done heating up it also becomes food for redworms and other soil organisms.
 Anaerobic composting - Slime composting, this is composting without air. Low maintenance, throw it in a pile and wait a couple years. If you just stack your debris in a pile it will generally compact to the point where there is no available air for beneficial organisms to live. Instead you will get a very slow working bacteria growing that does not require air. Your compost may take years to break down (this is what happens when you throw your food waste in the garbage that goes to the landfill).

Anaerobic composts create the awful smell most people associate with composting. The bacteria break down the organic materials into harmful compounds like ammonia and methane.