Terrace farming is a method of farming that involves cutting a sloped plane into a series of successively receding flat surfaces or platforms, which resemble steps, for the purposes of more effective farming). This type of farming is commonly used in Asia, the Mediterranean Basin, Africa, South America, and islands such as the Canary Islands. Terrace farming is an important agricultural method that has made farming in mountainous parts of the world possible, and its absence would have led to most parts of Asia being unproductive.

Terraced fields decrease both erosion and surface runoff, and may be used to support growing crops that require irrigation, such as rice). Terraced paddy fields are used widely in rice, wheat, and barley farming in various parts of the world). Drier-climate terrace farming is common throughout the Mediterranean Basin, where they are used for vineyards, olive trees, cork oak, and other crops).

Terrace farming prevents the washing away of soil nutrients by the rains, which leads to the growth of healthy crops. It also prevents the carrying away of plants by the heavy flowing rivers of water, which can lead to low crop yield. Additionally, terraces help in the reduction of soil erosion and water loss, and have made the idle hillside land become productive.

Terrace farming involves constructing specific ridged terraces on farmlands or turning hills into farmlands. The purpose of terrace farming is to intercept water in a designated channel and remove it via constructed erosion-resistant ditches or subsurface pipe outlets, which proves the efficiency of terracing to stop erosion and contribute to soil conservation. Terrace farming is an efficient soil conservation practice, but it requires regular inspection and maintenance.

Terrace farming has been practiced for centuries in various parts of the world, including China, Japan, the Philippines, Oceania, Southeast Asia, the Mediterranean, parts of Africa, and the Andes of South America.