Choose a site in your backyard to situate the compost pile that receives at least six hours of sunlight per day and has good drainage. Set up your container to house the compost pile, whether you use stakes and chicken fencing or a solid wood structure. Keep it away from fences or property lines where neighbors might be bothered by the sight or smell, and 100 feet away from sources of water.
Build the compost pile by layering the manure and the peat moss. Add a 12-inch layer of manure and then a 6-inch layer of peat moss, repeating until you have filled the compost structure or until you have used up all your manure, making sure that the pile is at least 3 feet wide and tall.
Allow the pile to heat up and decompose during the fall and winter, or for at least six months, so the microorganisms break down the pile into usable materials for the garden soil. Stir the pile with a shovel or garden fork to spread the heat of the decay from the center to the outer sections of the pile, helping it decompose more evenly.
Fertilize the garden with an inch of the composted manure and peat moss in the spring before you plant your early vegetables.