The pilot reported that, during a biennial flight review, he was briefed by the flight instructor to expect a simulated engine failure during takeoff and an engine-out approach to a perpendicular runway. He departed runway 21, and about 400 ft above ground, reduced power and turned left for the dirt runway 12. He overshot the dirt runway, banked to 40°, and felt a "strong sink." He leveled the wings and added full power about 150 to 200 ft, but the airplane continued to descend. The instructor stated he considered taking the flight controls, but the pilot maintained control. The airplane landed hard, the right main landing gear struck a "rabbit hole", the airplane veered right, and the left main landing gear separated. The airplane sustained substantial damage to the fuselage. The pilot reported that there were no preaccident mechanical failures or malfunctions with the airplane that would have precluded normal operation. The automated weather observation station located about 26 miles to the east reported that, about 4 minutes before the accident, the wind was from 220° at 10 knots, temperature 72°F, dew point 34°F, altimeter setting 29.79" Hg. The pilot reported that the wind was variable at 5 to 15 knots, gusting to greater than 15 knots, temperature 80°F. The pilot added that there was severe windshear and, later in the day, the assistant airport manager reported observing a dust devil over the accident site.