Southwest Yard and Garden shows viewers how to use recycled paper in compost! In order to compost paper you should first shred up the paper into pieces. Then you need to work in the paper into the soil or sand. You should work the paper into the soil in equal parts. Make sure you mix nitrogen into this composting paper. You need to mix nitrogen into it or it will not decompose and the process will not be fed. So first mix your paper with soil and sprinkle in nitrogen. You also need to water this in and keep this mix moist for the next couple of weeks. The smaller the paper shreds are the quicker the process is. You can even get papers shreds from banks or businesses that want to get rid of them! The better your soil and compost, the more earthworms you will have!