Final answer:
Farmers during the Great Depression could not repay their loans primarily due to a drop in commodity prices and severe drought conditions, along with financial sector practices that included the transfer of their mortgaged properties to less understanding larger banks which then foreclosed upon default.
Step-by-step explanation:
During the Great Depression, farmers faced extremely adverse conditions that made it difficult for them to repay their loans. Several factors contributed to this dilemma, one of the primary issues being the drop in commodity prices. This dramatic decrease meant that farmers were unable to generate enough income from their crops to cover their debts. Additionally, a severe drought exacerbated their struggles by reducing agricultural yields, leading to a further decline in income.
The financial infrastructure at the time also played a role. Farmers had typically mortgaged their lands to smaller, local banks familiar with the agricultural sector. However, as these banks failed, the mortgages were often sold to larger, less sympathetic banks that would then foreclose on the farms when farmers defaulted on their loans. This issue was compounded by the collapse in land values, leaving banks with properties they couldn't sell, pushing them towards failure as well. Overexpansion during more prosperous times, bad farming practices, and the government's reluctance to support price levels also contributed to the debt burden that the farmers could not shake off during the Depression.