In this paper,soil moisture loss from terrance bank and its effects on crop yield were studied,based on themeassurement of soil moisture and crop yield on hilly,and gully region of North Shaanxi. The results indicated thatevaporation from terrance bank obviously affected soil moisture of the terrance land in lm from the bank, and theyield of per stem of crop reduced 18.2% compared to the slope land. According to the calculation,soil water of terrace landwith lm bank lost 10.9% and with 2m bank lost 11.2% compared to the slope land.