Festival organizer Karen Wollscheid says fundraising efforts throughout the year didn't bring in enough to operate the festival without draining the group's resources.
It is the first time it has been canceled since it began in 1983.
Wollscheid says the festival typically costs $50,000 to produce and attracts about 4,000 visitors from throughout the Midwest.
The festival had been scheduled for September 19 and 20 in Spring Grove.
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