A discussion at The Soapmaking Forum turned me on to these packing peanuts. They are FDA approved and reusable. The peanuts decompose in water, leaving no toxic waste. Toss them on your compost pile or spread them on your lawn and with a bit of water they’ll dissolve in minutes. These cornstarch packing peanuts are part of a movement called “green engineering” which has also brought about other cornstarch based products including biodegradable cutlery. This is great news because a plastic fork will remain a plastic fork in a landfill for hundreds of years!

You can buy these reasonably priced peanuts online. Google results show several online suppliers. You may also be able to purchase them locally at UHaul Package supply stores at a higher price.