 Moisture is important. A compost pile should stay roughly as wet as a squeezed out sponge to help the living organisms thrive and work their magic. Compost is ready to use as a soil amendment when the ingredients are no longer identifiable, the colors are dark brown, the texture soft and crumbly, and the smell pleasant like the forest floor. Rough unfinished compost can be used as a top dressing mulch around all plantings.