The guy in black should be in one of the farmer's fields, not the one right next to the barn, but the one beside the south east section of that field.
That conversation doesn't matter. You can choose to make him even more jumpy if you wish. I tried calming him down the first time, but as I recall it didn't help. Adding to his paranoia was funny, though. <img src="/ubbthreads/images/graemlins/badsmile2.gif" alt="" />