The Florida Folk Festival is great. I have been there about three times over the years. The music is folk eclectic - with some bluegrass, old time, hammered dulcimers, island music, claw hammer banjos, old time and cajun dancing etc., etc. If you don't mind the drive and the weather (around the end of May it is as warmish as South Florida), the setting is fabulous. It is is Stephen Foster Park with the Swannee River running through it which takes you back to the mid 1800s - DoDa, DoDa! A very relaxed atmosphere altogether.
There is shade in the park, which helps and the food is terrific. They feature food by local church women (rice and beans, corn bread, good pork barbeque, chicken and dumpling, etc.) You get the drift - it is not carnival food - they do not have fried dough or other garbage.
They offer free workshops on various instruments have high class handmade instruments for sale and there are usually jams going on at several locations. The jams are not as intimadating as those at most bluegrass festivals. There is an undercurrent environmental theme - since it is sponsored by the FL Dept. of Environmental Regulation.
You can easily stay in Lake City, unless you like to camp in the heat. Generally, a good way to spend a couple of days in an interesting but relaxed setting.