Young wrote this song about his father, who had recently died. In his last months of life, Young's dad suffered from Dementia, which Neil said was very hard to deal with. His little cousin told Neil at the funeral that his daddy was fine and knew what was going on because when they were in the car and a police car pulled up behind, he yelled "Cop." Neil found a lot of comfort and humor in the story.
Neil speaks a bit more on his dad's dementia in his 2005 documentary Neil Young: Heart of Gold
. He describes it, bittersweetly, as "seeing your loved ones living in the moment."
David - Oakville, Canada