It has been proved that.the capital construction on farmland with stress c}n the engineering of transforming dope into terrance, is the best way for the deveicpment of dryland farming in arenaceous hilly area.According to the technical and economical limats of dryland farming and the edurance of local pepople，the engineering must be designed maintaining the criterions of convenient，saving cost.quickly and small--scale.After five years resting in the arenaceous hilly area of Tai'an city.the authors point out that small-scale terraces can save 50 percent of the engineering work.and 40 percent of material cost，the control speed can be risen by almost one more times.Compared with the cultivated slopeland.the benefits of soil and water conservation can increase by more than 85 percent，the soil water content in flood season can increase by about 28 percent.the productivity increases by 30 percent.and the rate of land utililation increase by 40 percent.Thus.the economical benefit increase greatly and people's initiative is enhanced.During the testing，the influential area of testing district is 500hm², and it is spread to area of 5 OOOhm² in Tai'an municipality