Major changes to the extent and quality of farmland habitats, brought by the intensification of agricultural practice, are thought to be the main factors driving declines in a suite of farmland bird species in Europe. Recent changes in agricultural techniques have also contributed to widespread soil degradation, arising from increased soil exposure to erosion forces, declining soil organic content and increasing soil compaction. Although soils have a fundamental influence on ecosystem properties, the implications of soil degradation for farmland biodiversity have received little attention. In this study, we measure the influence of soil conditions on the distribution of a declining insectivorous farmland bird, the yellow wagtail Motacilla flava, relative to other habitat features in arable fields. Soil penetrability was found to have a significant influence on the abundance of territorial yellow wagtails at the field scale, together with crop type. Other measured habitat features had little effect on territory abundance, including soil organic content, crop height (within preferred crop types), field boundary habitats and availability of bare ground. Monitoring of invertebrate abundance across 20 cereal fields revealed a significant influence of both soil penetrability and soil organic content on aerial invertebrate capture rates. This relationship was strongest during the latter part of the breeding season, implying that settling yellow wagtails could use soil penetrability as a predictive indicator of prey abundance during the chick-rearing period. The strong relationship between yellow wagtails and soil penetrability suggests a potential causative link between soil degradation and population decline. The role of soils in determining abundance patterns and population declines of other farmland species may have been overlooked in previous studies.