Napoleon decides that the farm will begin selling its stack lumber, disregarding warnings from Benjamin and Clover that it is unwise. He sells the timber at a high price to a neighboring farmer named Whymper, who later breaks his promise and refuses to pay the full price. Napoleon tries to negotiate, but Whymper threatens to cut off trade with Animal Farm, which would have severe consequences for the farm's economy.
Napoleon Outwits Himself
To ensure that Whymper pays the remaining sum, Napoleon devises a plan. He secretly sends out Squealer to gather evidence of human crimes against animals from other farms. He then blackmails Whymper with this information, threatening to expose it if he does not pay the full amount owed.
However, Napoleon's plan backfires. Whymper is furious at being blackmailed and retaliates by spreading the evidence to the other farms, damaging Animal Farm's reputation. The neighboring animals become outraged by the farm's hypocrisy in preaching equality while engaging in deceitful and manipulative tactics. They vow not to trade with Animal Farm, leading to severe economic consequences for the farm and further eroding the pigs' credibility.
In this instance, Napoleon's attempt to outsmart Whymper ultimately results in self-detriment. His blackmail scheme damages Animal Farm's reputation, leading to adverse economic outcomes and further weakening the farm's standing in the animal community.