Spread compost or well-rotted manure over the area. The amount needed depends on the density of your soil. Nina Bassuk from the Department of Horticulture at Cornell University explains that you may need 25 percent by volume – roughly 4 1/2 inches of compost per 18 inches of soil – to amend compacted sandy loam and up to 50 percent – 9 inches per 18 inches of soil – for compacted clay soils.
Till the organic matter into the soil with a garden tiller or tractor and plow, turning the soil to a depth of 18 inches. Organic matter breaks down in the soil attracting earthworms and other organisms, which in turn aerate the soil.
Add organic matter, such as compost, manure or peat moss throughout the season if you use the area for gardening. Mulch with grass clippings, hay or leaves. Tilling these into the soil at the end of the season is an effective way to build the organic matter in your soil.