The capacity of peatlands for agricultural production is generally low in the absence of intensive management (e.g. drainage, fertilization). In their natural state, peatlands have only marginal agricultural capability (Melling 1999, Rieley and Page 1997), thus restricting their use. Important characteristics that inhibit agriculture are the very high groundwater table, the low bulk density and bearing capacity, the high acidity, the low availability of nutrients, and their subsidence upon drainage. Conventional agriculture involves drainage, fertilizing, tilling, compaction and subsidence, which eventually cut short the sustainability of peatland agriculture (Succow and Joosten 2001).

Much of the small-scale but widespread agricultural encroachment in tropical peatlands is linked to severe poverty. Large-scale encroachment is mainly linked to palm oil development. Agricultural development of tropical peatlands in South-east Asia only started a few decades ago. On shallow peat these developments have led to the disappearance of the shallow peat layers as a result of drainage and ensuing oxidation. The agricultural successes are mainly due to the qualities of the surfacing sub-soil. As a result of continuous land hunger however, even the deeper peatland areas have become the target of agricultural development. Only a few commercial crops grow well on peatlands, including pineapple and oil palm. More recently the dryland species Aloe vera has been introduced in Indonesia to the desiccated peatlands and is falsely propagated as a “sustainable” crop.

Peatlands are used for forestry all over the world. Extensive commercial forestry operations have been established on peatlands in many nations. Exploitation of naturally forested peatland is practiced in northern boreal mires throughout Scandinavia and Canada.

Peat as an energy source is only important for regional or domestic socio-economic reasons, because it is more expensive and emits more CO₂ per unit energy than other fossil fuels. Peat has been used as an energy source for at least two millennia. At present peat only contributes marginally to worldwide energy production, but at the local and regional scale, it can still be an important energy source, particularly in Finland, Ireland, and Sweden. It also continues to be important in the Baltic States, Belarus and Russia. In recent years technical developments have led to lower, more competitive peat prices.

Peat is widely used as a growing medium in horticulture and as a soil conditioner. Peat substrates are used particularly in glasshouse horticulture for the cultivation of young plants, pot plants and for the growing of vegetable crops. They are also sold to amateur gardeners as a soil conditioner. In Europe, approximately 95% of all growing media for the professional and amateur markets are peat-based. The total global production amounts to around 30 million tonnes of peat per annum, of which approximately one-third is used for agriculture and one-third for energy (Joosten and Clarke 2002). Although alternative materials are emerging, these are not yet of sufficient quality, nor available in large enough quantities, to replace peat.

Peat is also extracted for small-scale uses. In addition to fuel and horticulture, there is a variety of other uses of peat that involve the extraction of smaller amounts. These include: raw materials for chemistry, bedding material, filter and absorbent material, peat textiles, building and insulation material, therapeutic uses (balneology), and peat as a flavour enhancer (e.g. in whisky) (Joosten and Clarke 2002).

Peatlands provide many plant species that are utilized for food, fodder, construction and medicine. One of the oldest and most widespread uses of wild peatland plants is as straw and fodder for domestic animals. For example, in Poland 70% of the peatlands were used as hay meadows and pastures. A second important use, especially in the temperate and boreal zones of Eurasia, is the collection of wild edible berries and mushrooms.

Peatlands may also be significant for hunting and fishing. Fur-bearers such as coyote, racoon, mink and lynx, and game species such as grouse, ducks, geese and moose, are often found in peatlands. In North America, black bears, hunted for food, fur, and traditional medicine (bladders), are also frequently found in peatlands. Wild reindeer (caribou in North America) are hunted for meat for local markets as well as for subsistence. An estimated 250,000 people in the Eurasian Arctic depend on reindeer as a major food source.