Final answer:
The crop-lien system was a form of credit where Southern farmers borrowed money against future crops, often leading to a cycle of debt due to high interest rates and the hierarchical repayment structure favoring landowners and merchants over laborers.
Step-by-step explanation:
The crop-lien system was a prevalent form of credit in the South from 1860-1930. It allowed farmers to take out loans using their anticipated future crops as collateral. Unfortunately, due to high interest rates associated with these loans, it was challenging for farmers to attain financial prosperity, even in times of good harvests.
Under this system, landowners and merchants held significant power, prioritizing their own repayment over that of the farmers or sharecroppers. The poverty of those working the land was exacerbated, as they were often mired in debt, shouldering the risks and costs of agricultural production without true ownership or economic independence.
To answer the student's question directly, option C is correct: The crop-lien system was a system where farmers borrowed money against future crops.