These were built by the Incas to experiment with their crops. The different layers of terraces exist in different micro-climates. By moving crops gradually between terrace layers, they got them to adapt to growing in different climates. The bottom level is supposed to correspond to sea level.
Potatoes originated in Peru. There are supposed to be over 3000 types of potatoes grown in the country.
There were a few of these terraces in the area. This particular one has not been reconstructed and restored. There are differing opinions on whether one should leave the ruins as they were found, or whether they should be rebuilt to the way they were thought to originally exist.