The Burwarton Show was due to take place between Ludlow and Bridgnorth on August 5 this year, with the last event being held in 2019.
Organisers had been proceeding with caution in the run up to this year's event, but declared at their latest meeting that the ongoing uncertainties surrounding the Covid-19 pandemic had made it "impossible" to plan.
Alan Watkins, chairman of the Burwarton & District Agricultural Society, said the whole team was "extremely saddened" to have come to the decision.
Mr Watkins added: "Burwarton Show is a great family day out and people come to it from far and wide.
"However, we have to prioritise the safety and wellbeing of everyone who either attends or helps to stage the show.
"We know how disappointed everyone will be but feel certain that you will understand the situation.
"We are also mindful of the potential risk of transmitting the virus into the local area."
The show, which attracts about 20,000 people, was due to take place on August 6 in 2020, but joined scores of events forced to cancel due to the coronavirus crisis.
"This is my second year as show chairman and never in my wildest dreams could I have imagined what was ahead of me when I was elected in January 2020," Mr Watkins said.
"Cancellation of two consecutive shows is unprecedented in the history of Burwarton Show and I have to hope that it will be third time lucky in 2022."
The committee thanked its loyal members who had supported the event over the past year and said its stewards, sponsors, contractors and traders had been understanding in the circumstances.
All members and stakeholders involved are set to be contacted over the coming days.
The next Burwarton Show has been scheduled for August 4, 2022.
Mr Watkins previously said the show’s organising committee, which usually donates thousands to charity each year, would be able to financially withstand one more year’s absence.
The event dates back to 1891 when the Burwarton & District Farmers’ Club held the first show in a field north of the village.