Terrace farming is a method of farming whereby “steps” known as terraces are built onto the slopes of hills and mountains. When it rains, instead of rain carrying away the soil nutrients and plants down the slope, they flow to the next terrace. Every step has an outlet which channels water to the next step. This helps in keeping some areas dry and others wet. On very high altitudes, other crops apart from rice can be grown. This is because rice does not do well at high altitudes. There are two types of terracing known as graded terracing and level terracing. A graded terrace may have either constant or variable grades along its length. On the contrary, the level terraces follow a contour line and are best suited for permeable soil.suited for permeable soil.