This paper is a part of the research conducted in Sedayu district, Bantul, Yogyakarta. The aim is to classify soil erosion hazard in the area, construct land capability classes and establish some of the social-economic factors that influence farmers in implementing soil conservation activities. Survey method and purposive stratified techniques of sampling were used. Social-economic factors were quantified using scoring and later analyzed using SPSS program. Results indicate that the dominant land capability class in the area was class 1 found on land units consisting of alluvial plains with slope steepness ranging from 1-3% and having wet rice and mixed gardening as major land use. They had a very low degree of erosion hazard. Land units with mixed gardening as a major land use and found on karst landforms with slope steepness ranging between 8-15% were identified as having a very high degree of oil erosion hazard. The dominant land capability classes were 1, 2, 3, while classes 7 and 8 were limited to small area. Among the social=economic factors, it is found that the education factor has the greatest influence towards the farmer’s response to conservation activities in the research area.