Assessing the construction suitability and sediment reduction potential of dry-farming wide terraces is critical for improving soil and water conservation in semi-arid and semi-humid regions, yet these aspects are seldom evaluated within an integrated framework. Focusing on the Loess Plateau, this study delineates potential construction areas based on precipitation constraints, quantifies soil erosion using the Revised Universal Soil Loss Equation, and develops a multidimensional framework to jointly evaluate construction suitability and sediment reduction potential on sloping farmland. Results indicate that slope, transportation accessibility, and soil erosion intensity are the primary determinants of suitability. Highly suitable, suitable, and marginally suitable areas account for 7.5%, 7.2%, and 4.3% of the study area, respectively, with Shanxi, Shaanxi, and Gansu provinces-and particularly Yulin, Yan'an, and Qingyang-emerging as priority regions for implementation. Scenario analysis suggests that targeting (i) highly suitable and suitable areas or (ii) all suitable classes would reclaim approximately 59.89 & times; 103 km2 and 77.19 & times; 103 km2 of sloping farmland, respectively, leading to reductions in mean soil erosion modulus of 16.6% and 22%. These findings provide a quantitative basis for optimizing terrace deployment and advancing regionally targeted soil erosion mitigation strategies on the Loess Plateau.