From the PDF:
For levels 1-4
King Connolly IV (really more of a minor lord) ruled over a small fiefdom of several thousand, his knights barely numbering two dozen. It was a fairly boring and mundane farming community with a small side industry in timber. There was also a fairly large halfling community (several hundred) under his rule. But the townsfolk accused them of thievery, foul practices, and curdling goat milk. Of course far more importantly, King Connolly found their beady little eyes unattractive so he called a pogrom to burn their holes and drive them from their apple orchards. They fled as refugees into the great forest to the north.
Later King Connolly realised their apple brandy and other luxury goods made up a good portion of his revenues. As his own inbred peasants were far too daft and unskilled to take over the orchard he has promised a reward of 1000 pieces of silver to any who can bring back the halflings to work their orchards and pay their taxes. If that alone is insufficient, the pogrom did not succeed in keeping them from escaping with the vast majority of their valuables.