Benefits

• Cedar chips are slow to decompose and do not need frequent replenishment. Cedar chip mulches inhibit weeds, reduce soil erosion and add nutrients to the soil. Some gardeners believe the fragrance of cedar chips repels pests such as ants and slugs.
  
  

Uses

• Cedar chips applied around shrubs and perennials create habitat for earthworms and organisms that improve soil condition. According to the Colorado State University Extension, a layer of chips reduces water evaporation up to 50 percent.
  
  

Problems

• Cedar chips may repel both harmful and beneficial insects until the cedar fragrance fades. Natural cedar chips age to a gray color that some homeowners find unattractive. Due to their slow decay, cedar chips do not release nutrients into the soil as quickly as other organic mulches.