<p>This study explores the impact of intergenerational differences on farmers’ terrace abandonment in response to increasing intergenerational differentiation among rural households and the practical issue of terrace abandonment. Logit and Tobit models are employed to conduct empirical analysis and it is found that terrace abandonment increases sequentially among the new, middle, and old generations, confirming that intergenerational differences significantly influence whether farmers abandon terraces and the terrace abandonment scale. Village characteristics and government subsidies significantly influence farmers’ terrace abandonment. An increase in the number of migrant workers in the village increases terrace abandonment among new and middle generation farmers, whereas an increase in the distance from the village to the county significantly increases terrace abandonment among old generation farmers. An increase in the village’s total population significantly reduces terrace abandonment among new generation farmers. An increase in government subsidies significantly reduces terrace abandonment among middle and old generation farmers. The impact of intergenerational differences on terrace abandonment is more pronounced in low-altitude areas. To reduce terrace abandonment, it is necessary to promote terrace transfer, develop characteristic agriculture, improve terrace farming subsidies, and propose targeted strategies for the different generations of farmers.</p>