The first two seasons of Fargo are two of my favourite seasons of TV of all time, but yep, the UFO moment always perplexed me. It rubbed me up the wrong way at the time, it didn't make such sense to me on a second viewing, and as time has gone on I've always struggled to reconcile its place in the series. Aesthetically, tonally, narratively - everything just felt off about it for the longest time. Even the joke that everyone loved in that scene ("It's just a space ship, Ed! We gotta go!") didn't really make me laugh like it did everyone else. That was about four years ago and I'd not watched it since.
But earlier this year, right as we went into lockdown actually, I was just out of hospital (not COVID) and was in the mood for some comfort TV while getting my strength back. My girlfriend's not one for serious dramas really, but she loved the first season (mainly because of Billy Bob) so I thought I'd try out season 2 on her. Watching it again, suddenly the UFO sequence made total sense to me in a way it hadn't done before. The whole point of that scene is that it probably didn't happen, but it also could have done, because nobody's really 100% sure about the true history. It's all reported and fragmented. The entire episode is narrated by Martin Freeman and it's presented in the manner of a historical documentary. In fact, not all of the details are filled in - it's mentioned a few times that "nobody knows what happened next" or "nobody has been able to very this, but...". Basically, it's a story. Is the story 100% true? No. Is it a complete fabrication? Also no. But is the dramatic story more interesting than the boring truth? Definitely. Can anyone at the motel be sure there was a UFO? Who knows? There was so much going on - what with all the murder and shooting - that I doubt anyone can remember clearly. Through the grapevine of time, someone has planted the idea that a UFO really did land in Sioux Falls that night, and so Martin Freeman - who's making this "documentary" - has decided that he might as well include it. UFO sightings were rife during the Midwest in the 70s because nobody could prove their falsehood. There are references throughout the season to people spotting aliens. There's even the famous "Who would have known that in the 20th century, our world was being watched" monologue from War of the Worlds (that has sadly been cut from Netflix's edition for some reason). Aliens are a recurring theme at sporadic points throughout the season and the UFO turning up is just a culmination of it.
They're also a reference to the technological and increasingly conspiratory future America was heading towards. It's obviously informed by the hindsight we have now, because we know what happened to America in the 80s, 90s and 00s, but it rings true all the same. I'd completely missed just how much of season 2 is explicitly about that particular period of American history - as they stand in the dying embers of the "old world" (Camelot era, Vietnam, Nixon) and stare out into the grim misery of the future (AIDS epidemic, 9/11, another "Vietnam" in Afghanistan & Iraq). Jimmy Carter was, in the eyes of the people, a miserable president who hated the country, so they shifted him out - within weeks of season 2's events concluding, Reagan wins in a landslide. White America's dismal outlook following the radical social upheaval of the 60s and the depression brought on by the aftermath of Vietnam was about to be satiated by the comforting neoliberal revisionism ushered in by Reagan, and frankly the population was desperate for it - rightly or wrongly. Fargo (both the movie and the TV series) is a small-town story, sure, but at heart it's very much about the corruption, cynicism, and anger in the Western world at large. As one example: Lou & Hank are both veterans of different wars, scarred for life - they even have a conversation early on in the season about how they often worry that they "brought the war home with them". Lou even has that moment with Reagan where he asks how America can be "cured of the sickness" that he believes has taken the form of Betty's cancer - Reagan just smiles and turns away. You see it in Mike Milligan's character, whose reward for his work and bloodshed is just an office in a building of other offices.
In the end, the UFO represents both the way history can be mangled and misrepresented, and the kind of place America was heading. It feels dumb in the moment, and I always wished they could take it back, but with more viewings I've realised I like the mystery it creates and the questions it brings up. I even like Peggy's joke now as well.