One day while Gumby is traveling through the book, "Down on the Farm", he discovers that his longtime enemies, The Blockheads--who own the loan company--have foreclosed on all the farmer's properties. Gumby and the Clayboys decide to hold a benefit concert to raise money to buy back the lost farms. Gumby puts on a spectacular performance which has a strange, yet amazing, effect on his dog, Lowbelly--he starts to cry... pearls! These pearl tears do not go unnoticed by the unscrupulous Blockheads. Thinking it is the Clayboys' music which triggers Lowbelly's tears, the greedy Blockheads devise a selfish scam to record the music, dognap Lowbelly and harvest the free-flowing pearls. Upon returning to their lab, the Blockheads try in vain to induce Gumby's loyal friend to shed pearl tears by playing tapes of the Clayboys' music. The plot thickens when a computer instructs the bumbling blockheads that only LIVE music will work: Undaunted, they scheme to kidnap the whole band!