Sell the sword to the blacksmith.
I would in the end most likely (after killing the farmer), but I find a lot of stuff is barely worth selling its so worthless. Better (IMO) to just cut the effort out of that and get gold directly, and at an amount that is not based on realism for the NPC's wealth, but based on the time/effort the quest takes. I know this is a matter of challenge vs immersion vs convenience and preferences on all sides, I'm just voicing my preference here. This isn't a deal breaker for me or anything. I played OB many times and there are worse examples of this than OB anyway.
Really? I would argue something quite contrary, to be honest. I always felt like gold was too easy to gain be that either by simply looting, or selling stolen goods, and in effect hurts not only a non direct challenge level of the game, but also (at least for me) realism, immersion even and sheer pleasure and feeling of accomplishment gained by feat of gaining a large sum of gold. It just loses it's power, and... Charm, when thrown at you in large quantities. If to gain 60 gold pieces (since there might/should be lower fractions represented by lover value coins, like sliver and copper) you had to crawl your way trough underground ruins, raid an old crypt or rob local merchants house, every time risking -and nearly losing- your life in the process, and for this sum you finally managed to buy this solid, dependable short sword, I can guarantee you: You're gonna cherish this sword like nothing else, and you'll feel much better thinking how much of an afford did you had to go trough to gain this full plate steel armor -It'll be a testament of your skill, and devotion as a hero-.
By adding more value and buying power to money, as well as making it harder to obtain in certain quantities ( which might be accomplished amongst the others by adding smaller values -just sayin'- ) you add (IMO) more fun and excitement to such a simple mechanic as buying and selling, and making it that much more coveted you bring back it's status as a valuable -worth risking life for-.
I could never find a game's economy fun and exciting, no matter how it's implemented. Gold is a tool, nothing more, to get stuff. Stuff I want, stuff I need. Making it harder to get stuff I need is not my idea of fun. In fact, I only buy stuff to make the game
easier. Seems like this issue is falling pretty much on the side of people who play to be challenged and those who don't. You play to be challenged, I don't. Maybe Bethesda could add an economy slider in the options to mess with the base economy? I don't know.