Since 1959, floats adorned with tulip heads supplied by Belmont Nurseries in Norfolk have paraded the streets for locals to see. The event has seen crowds of up to 100,000 people but there has been a decline in spectators over recent years.
The parade costs £200,000 with both Lincolnshire County Council and South Holland District Council providing funding.
Parade Manager Kathleen Codd said: "It's a real shame for it to end after 54 years but it's an economic change we can't help."
Preparations have begun for the 2013 procession, with a theme of "Let's Celebrate".