So what is compost?
Compost is organic matter that has been decomposed and recycled as a fertilizer and soil amendment. Compost is a key ingredient in organic farming.
At the simplest level, the process of composting simply requires making a heap of wetted organic matter (leaves, "green" food waste) and waiting for the materials to break down into humus after a period of weeks or months. Modern, methodical composting is a multi-step, closely monitored process with measured inputs of water, air, and carbon- and nitrogen-rich materials.
The decomposition process is aided by shredding the plant matter, adding water and ensuring proper aeration by regularly turning the mixture. Worms and fungi further break up the material. Aerobic bacteria manage the chemical process by converting the inputs into heat, carbon dioxide and ammonium. The ammonium is further converted by bacteria into plant-nourishing nitrites and nitrates through the process of nitrification. (With material from: Wikipedia)