I've always wondered this, especially since it seems to be talking about Neil in a negative way. If someone could answer this since I can't find a solid answer else where that'd be great!
Neil Young had written "Southern Man" in 1970, taking on the issue of Southern racism and a long history of brutality toward African Americans. The Southern Band Lynyrd Skynyrd responded in 1974 with "Sweet Home Alabama," as defense of Southern culture and specifically of Governor Wallace ("where the governor is true"), who famously defended segregation against federal efforts to integrate Southern schools.