It is a swing state that leans slightly Democratic, but I wouldn't call it a blue state.
^^^
It's a swing state that's voted Democratic in 6 of the past 7 elections in a country where Democrats have won the Presidential popular vote 5 of the past 7 times; one of those is attributed to the Farm Crisis.
The real question is, "Why do Republicans keep alienating swing state voters?"
That is mostly selection bias. We are at the end of a two term Democrat's run. That was preceded by a two term Republican. That was preceded by a two term Democrat. Iowa voted with the winner every time but 88 and 00.
2000 was a third of a percentage point. Gore was almost more openly pro ethanol than Bush was in 2000. 1988 was the farm crisis.