after townsend left office, he extricated himself from internal politics of the state party, and did not involve himself in the selection of his successor. during world war ii townsend used his farm experience in government service, directing the office of agricultural war relations, the agricultural conservation and adjustment administration, and the food production administration. in 1943 he resigned from federal service and returned to indiana to manage his farms in blackford and grant counties. townsend was the democratic nominee for the united states senate in 1946, but was defeated by william e. jenner. he died november 11, 1954 from a heart attack, and was buried at the odd fellows cemetery in hartford city, indiana.