The sale of peat-based compost is to be banned in Britain.
Environment Secretary George Eustice announced new consultations to be held by the end of the year on banning its sale.
Despite a voluntary plan to phase out peat before 2020, most of the compost sold in garden centres is still peat-based.
Scottish peat extraction sites include one at Moy near Inverness, where the soil goes to a company in the Lothians for growing mushrooms. It is unclear at this stage whether the proposed ban would affect this sector, but if it does the site's operator Brian MacGregor said it would cost jobs.
He said: "We have six staff employed here and it will have an impact on them. We are just satisfying demand from the UK mushroom industry.
"We are the only folk in the whole of the UK mainland extracting peat for the mushroom industry. Our product grows 500 tonnes of mushroom per week."
