Qinghai Province of P. R. China is a typical marginal upland agricultural area characterized by harsh climatic conditions, a poor natural resource base, fragile environment, backward economic development and low income level. Agriculture in Qinghai is characterized by its subsistence and is carried out in very poor and harsh environments. Farmers there totally rely on their limited resource base; they are not only short of purchasing power to buy products from outside of the region, but also have many limits to move out of this region to seek jobs. Therefore, sustainable agricultural development in this region means improving agricultural productivity while enhancing the resource base. Techniques which can improve agricultural productivity and enhance the natural resource base should be regarded as sustainable. 

In order to ensure sustainable agricultural development and to meet the challenge of feeding its ever-increasing population with very limited land and water resources, Qinghai developed a series of farming and resource management techniques to increase agricultural productivity, particularly, grain productivity. Among these technologies, the most significant and effective one is terracing.

It could be concluded from this case study that there are many constraints to sustainable agricultural development in Qinghai Province. However, soil and water erosion, shortage of water resources and low efficiency of water utilization are decisive constraints to agricultural development. Terracing is an effective and efficient technique to overcome these constraints.