Beverley Folk Festival was due to be held from June 15 to 17, with more than 80 acts, including headliners Gretchen Peters and Turin Brakes.
But it was cancelled earlier this week with ticketholders told they would not get a refund as the company has gone bust.
Deer Shed Festival, which is on from Friday, July 20 to Sunday, July 22, said they were saddened by the news.
They are offering full weekend adult tickets at a heavily discounted Â£50 (plus booking fee) for holders of adult full weekend tickets to Beverley Folk Festival.
The ninth to date, the festival boasts Goldfrapp, Field Music and Drenge at the top of the bill.
While not designed soley for folk purists, folk-influenced acts include: This Is The Kit, Scott Matthews, Rozi Plain, Pictish Trail, Siv Jakobsen, Bryde, The Lost Brothers, Seamus Fogarty, Night Flight, Holy Moly & The Crackers, Morrissey & Marshall and more.
A spokesman said: "Last year was a rough year for festivals countrywide, as many of us put on events that our audiences and artists loved, but the stories that stick in people's minds are from the minority that didn't go to plan for one reason or another.
“With this offer, we’re trying to do our bit to let everyone know British festivals are not in crisis, as headlines might suggest.
"If you had plans to spend the weekend at Beverley Folk Festival, come to Deer Shed instead and experience just how magical a British summer festival can be.”
Held in the grounds of Baldersby Park near Topcliffe, the event is getting bigger but retains its family-friendly feel, while attracting increasingly big names from the world of indie, alternative music and acoustic sounds.
Around 10,000 people went last year.
To claim the discount, forward your proof of purchase from Beverley Folk Festival to [email protected], and the Deer Shed team will reply with a discount code for full weekend adult tickets to Deer Shed Festival 9