DE is diatomaceous earth. It's a naturally occurring, soft siliceous sedimentary rock that's been ground into a powder (silica, fossilized remains of diatoms). What it does is cut open the exoskeletons of insects and dry them out. Its safe for the chickens (or you) to walk on, be dusted with or even eat- just take care not to breathe it in.
You'll only want to use food grade DE. Apply it where it will stay dry, its useless if it gets wet. If you do put it in a place that gets wet, you'll need to reapply.
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