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In the late 1960s, the sugar-growing province of Tucumán, Argentina, was undergoing the deepest economic crisis of its history. In 1966, eleven large sugar mills closed by order of the national government, then ruled by military dictator Juan Carlos Onganía. The mills closure left a quarter of the province’s labor force unemployed, which, in turns, prompted a massive rural exodus and a permanent state of social unrest. Paradoxically, at the same time, the suddenly impoverished region was experiencing a boom of folk music festivals organized by small cities and rural towns, including those severely hit by the sugar industry crisis. This essay explores the context of the folk festival phenomenon, analyzing the role of town notables and local civic organizations in responding to the crisis brought about by the closure of the mills. The festivals were, in fact, part of a wider effort of local towns to develop their infrastructure and social services. By organizing festivals and fostering community development, local notables acted as a counterweight to the activism of the working class, generating spaces of consent that aided the military government’s plans to reorder the provincial economy.