I don't use peat moss. I can't get the hang of bedding a trap rock solid in the stuff. I also noticed when the traps get a soaking rain, or a big snow melt, and then the temps bottom out, it freezes up also. I use pre-dried and sifted dirt, and calcium chloride from the feed store. I keep a tote full of dry dirt in the barn, and put it in a bucket as I need it. The calcium chloride come in pellets or flakes. I just take an old blender, and chop it up really fine. Once I get the trap set, I pull it up and put some CC in under the jaws and spring levers. Then I layer it in as I bed the trap. I put a little more over the top and cover with the final layer of dry dirt. Dad and I have been working off the same bag of it for 4 years, and haven't even gone through 1/2 a bag.
I have never notice it rusting the traps. I dye my traps in logwood, and wax them. There shouldn't be any CC getting to the metal.