But there is another problem to that: the resources you need to pay his Blackmail are in hostile territory many leagues from your Stronghold. The Pig maintains small forts scattered over the area, and enemy troops roam freely between the Iron and Stone Mines and the Pitch Fields and your Castle. You will have to secure the area and send escorts to protect the workers while they travel back and forth. Unfortunately, Knights, the best armed escorts, require Armour, so you must balance your need for defense with the need to hoard Armour for the King.
After fulfilling the Pig's requirements (100 Suits of Armour, 200 Stone and 200 Pitch) the Invasions will cease and you can clear the forest, plant Wheat, mill Flour and make the 200 Loaves for the King.
The Wolf's son, taking up his father's mantle after you slayed the original Wolf, has established a farming community in the Valley, but has signed a Treaty of Neutrality. He seems to be honouring the treaty, but that may change in time, for he hungers to revenge his father's death. As long as he does keep the peace, do not harass his people or attack him. Your own citizens, long used to the relative democracy and lenity the Emporer's governors there have always maintained, may chafe under forced production quotas, so do not push them too hard.
You have 20 years to fulfill this quest.
Bon Chance, Chevalier."