The formation of crusts or seals at the soil surface is exceedingly important in determining how much rainfall infiltrates into the soil and how much runs off, causing soil erosion. This paper explores the processes involved in the formation of crusts, such as raindrop impact and clay dispersion, to formulate a picture of the mechanisms involved. We discuss the major consequences of crusting, namely, runoff, erosion, and impaired seedling emergence, and present strategies to reduce soil degradation. Examples are offered from many parts of the world.