Yes, terrace farming is considered efficient in terms of concentrating moisture where it is needed, on the crops. It is also a great way to reduce erosion.
It depends on the climate and terrain you are planning to develop your garden on. If you have a sloping yard, terraced gardens are incredibly efficient as the natural effects of gravity distribute moisture in a conservative and balanced fashion. The ancient Incas used to harvest agriculture mostly from terraced garden due to the mountainous terrain making traditional forms of farming unfeasible.
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