Despite a few plot holes, the story sounds pretty intriguing, including the explanation behind the farmer's powers and the forest's curse, I feel like the game will only become better with the added backstory to the headless guy and the forest. I would suggest delivering it by leaving the farmer's own diary entries, some government land-related documentation, newspaper articles on the whole situation and, perharps, his brother's diary (if you decide to incorporate him into the story). But these are just suggestions.