According to Stephen Colbert, apparently there really is such a sport. I am finding it increasingly hard to tell the difference between parody and the real thing. (It starts at the 4:00 minute mark.)
(This clip appeared on June 13, 2011. To get suggestions on how to view clips of The Daily Show and The Colbert Report outside the US, please see this earlier post.)
Funny, I found the first canoe dancing clip on youtube when I was looking for the song “Lady in Red.” People have strange hobbies. I should know, coming from the one-time world capital of chainsaw carving.