An annual festival that raises money for farmers across the country is slated to come to the University of Minnesota next week, but organizers now say the event is in jeopardy if the university's administration and striking workers cannot come to a deal.

Farm Aid, an annual festival organized by Willie Nelson, Neil Young and John Mellencamp, has held events in different cities for the last 40 years, raising more than $85 million. But the financial impacts of moving or canceling the event scheduled for Sept. 20 at the Huntington Bank Stadium "could be devastating," organizers said.

Organizers posted on social media Friday night that Nelson had spoken with Gov. Tim Walz and said he is "grateful that he understands what's at stake for farmers and Farm Aid."

"We both know that, ultimately, it's up to the University to do the right thing, and soon, so that Farm Aid 40 can go forward," Nelson said.

Crews were scheduled to start setting up for the festival on Friday, though Shorlette Ammons, coexecutive director of the event, said that work hasn't started yet and is contingent on this labor dispute. 

"Until this issue is resolved, we hope urgently, then our show is kind of stuck in limbo," said Ammons. "The reality is many of the workers who actually put our show together, a lot of our production crew, for example, back of house folks are union members themselves. So, in solidarity with other workers, they rightfully will not cross that picket line."  

Ammons didn't speak to the possibility of moving the event to a different venue and said instead they're hopeful the university and the union will come to an agreement in time.  

"Our primary focus right now is ensuring we can pull off this show, and right now the thing that will make that happen is for this dispute to get settled so our folks can get on the ground and begin making that work happen," Ammons said.   

Food service, custodial and maintenance employees working for the university system have been on strike since Monday.  

"We want nothing more than to hold this event as planned," Farm Aid said in a statement on Thursday. "Today, the University's Teamsters employees are on strike because of the University's inability to come back to the table to resolve this contract dispute justly. We are deeply concerned that this jeopardizes our ability to hold Farm Aid 40 as planned but primarily puts these workers in a place of hardship as they labor to provide basic needs for their families."

In a statement, the university said it "is and will remain highly supportive of farmers. The University of Minnesota values the mission and aim of the Farm Aid festival and has gone above and beyond to partner with the organizers to create an exceptional experience for attendees and artists."

"The decision about whether the event moves forward is theirs, it is not a University of Minnesota decision," the statement goes on to say.

Members of Teamsters Local 320 are asking for a wage increase that "meets or exceeds" 3.5%, which officials said has been provided to other bargaining units, including graduate students. On Friday, 82% of the 1,400 workers rejected the university's latest offer.

The university has called the strikes "disappointing" and assured its system is "prepared to continue vital services to meet the needs of our students, faculty, staff and community." University officials say they're at the bargaining table and are "waiting for Teamsters Local 320 to join us."

Farm Aid said it is looking at other options for hosting the event, but it is "not an easy task to pivot at this point." 

"We urge the University of Minnesota to settle this contract quickly so that Farm Aid 40 can proceed as intended — to celebrate four decades of farmers, music, and solidarity. The world is watching, and together we can make sure this anniversary is remembered for unity, not division," organizers said.

When asked about refunds for ticket holders in the event this festival in cancelled, Ammons said on Friday that "all of that will be in the works." 

UPDATE: Farm Aid will continue as scheduled after a tentative deal was reached between the University of Minnesota and members of Teamsters Local 320.