If you work the wood chips into the soil, they will be used as a soil amendment instead of a mulch. There are different considerations when using the wood chips in this manner. They can be beneficial by creating increased pore space. In a compacted soil, they allow necessary air and water to more easily penetrate a compacted soil. The wood chips will decompose releasing nutrients into the soil. The decomposition will occur more rapidly if the chips are worked into the soil, but it occurs even if the chips remain on the surface as a mulch.

The decomposition process adds some additional considerations into the gardening equation. In order to decompose, the wood chips will be food for beneficial composting fungi and bacteria. The fungi and bacteria need the food materials provided by the wood chips and nitrogen to accomplish the composting process. Wood chips are low in nitrogen, so the fungi and bacteria will take the nitrogen from the soil. Large chunks of wood will decompose slowly. Smaller wood particles with a larger surface area-to-volume ratio will decompose more rapidly. This will cause nitrogen deficiency problems in the soil. If you are using fine shavings or sawdust as mulch or as a soil amendment, you should add additional nitrogen in the form of chemical fertilizer or manure to the soil to provide the needed nitrogen.

Using the wood chips in the landscape is an excellent idea, but it must be done properly. Keep in mind the considerations stated above so that you will do it properly.