Terrace farming is a method of farming that slows the runoff of irrigation water by having the soil below suck up water as it drains downward. Plants that have high water requirements such as rice are often used in terrace farming. So yes, terrace farming can use a lot of water, but it uses it efficiently.
No, it does not use more water than conventional farming, and could use less because it is used to slow the flow of water down a hill side. It was mainly used by the Incas to deal with cold temperatures at night, tropical temperatures during the day, and a lack of dependable rainfall. They still used irrigation to help collect more water.
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