Farmers use biodegradable mulch films to improve soil fertility and water retention by laying the films directly on the soil surface. These films, made from materials like cornstarch or other organic compounds, decompose over time, releasing nutrients back into the soil, which enhances fertility. Additionally, the films act as a barrier that minimizes water evaporation from the soil surface, thus conserving moisture. This dual action of nutrient enrichment and moisture retention leads to healthier soil and better crop yields.