Final answer:
The crop lien system allowed Southern farmers to use their future crops as collateral for loans. The system had high interest rates that made it difficult for borrowers to prosper. Lenders used the crops as a guarantee in case they couldn't enforce their liens.
Step-by-step explanation:
The crop lien system was a system of credit that allowed Southern farmers to finance their operations by using their future crops as collateral. Under this system, the farmers would borrow money at high interest rates and pledge their crops as repayment.
For most borrowers, the high interest rates prevented them from prospering even when crop yields were high. The lenders used the crops as a guarantee against the possibility of not being able to enforce their liens.
Therefore, the subject of this question is Social Studies.