The city of Schaller, named after Phillip Schaller, was incorporated in 1882. The city had been founded in August 1879 as a station for the railroad under construction. The economy then, as currently, was based on commercial support for surrounding farms. Settlers came mostly from Germany, England, Canada, New York, and eastern Iowa. Throughout the middle part of the twentieth century a major industry consisted of the packers of Bango and Jolly Time popcorn. The presence and size of these two companies helped Schaller become "The Popcorn Capital of the world." Popcorn is still a major area crop but the companies moved on to other locations in the 1980s. The railroad ceased operations and pulled up tracks in the 1970s. Transportation connections are by U.S. Route 20 and Iowa Highway 110. Corn (seed and feed), soy beans, and feeder cattle are the major products of the area.