I'm not on the board, but I believe this has more to do with logistics than anything. For example, the Knights of Columbus booth that we have, we don't know if we will be able to get all the raw materials for all the food we need to make all weekend. We are still talking about having some semblance of our food booth, but are VERY unsure whether we can get yeast for our beer bread for example. There are so many unknowns. And we are closer than you think to having to be able to having to start getting everything together.
Additionally, many of the people that put it on are getting advanced in age. The sad fact of the matter with anything like this these days (especially in a small town) is that everyone wants to go out and have fun and party, but no one wants to do that damn work. The people that do the work apparently decided that they couldn't pull it off in time with all the challenges going on. Yes, it'll be a financial hit, but it is what it is.