Banks often suffered in the 1930s and lost money because they could not sell farms they repossessed. The economic challenges of the Great Depression, combined with drought and falling agricultural prices, led to widespread foreclosures on farms. As a result, banks found it difficult to resell the repossessed farmland, contributing to their financial difficulties during that period. The agricultural sector was severely affected, and the inability to sell farmland added to the overall economic hardships of both farmers and banks during the 1930s.