The article explores how population pressure and poverty affect soil and water conservation in rural areas. A model based on data from Ethiopian highlands shows that in degraded soil conditions, households make decisions on farming, consumption, and investment to maximize their long-term well-being. When land is scarce due to high population, farmers are more likely to invest in conservation methods, especially if these methods don't reduce land for farming. However, poverty can limit the ability to invest in conservation, leading to less sustainable practices. If profitable technologies exist and market limitations are not a barrier, farmers are more likely to adopt sustainable practices.