(rural) Greater Minnesota is characterized by the electoral cleavage between Lutheran Democrat Scandinavians and Catholic Republican Bavarians. That's American Demographics 101 stuff, man.
(It's also why the German Catholic areas show up so well in the 1928 and 1960 maps - that wouldn't be the case if they had also voted Democratic in 1924 or 1956.)
I take it that Perry County, unlike bits further west in southwest Indiana, has no coalmining history.
The Iowa analogy may actually be quite fitting.
Fun fact: In the State House, the area was split between the districts of two longterm Democratic incumbents from further east and further west - Paul Robertson and Russ Stilwell. Both held leadership positions, Stilwell's a union man. Both went down to defeat in 2010. Republicans then drew what can almost be described as a Dem pack in the area (eh... it voted for Obama in 2008, anyways, and has all of Perry) and whisked the 2010 winner that lived in it away to make her Lt.Gov.
Then held the seat in 2012 anyways. Democrat can't have outperformed Obama by much.