The farm on the herd-lands is useless to the Stag-clan now; its farmers were slaughtered, and the Dragon-clan desires it. If it is destroyed, however, the Dragon-clan will not wish to remain here.
'This farm is nothing to the Stag-clan now -- it only serves to keep the Draig-lûth too close to Lhan Tarren and the wilds of Trum Dreng while they feel the need to occupy it.
'It would be better if the whole place was burned to the ground, and me with it. Without hope, there is no future here. Not for me, and not for them.'
There is some sense to what Blodwen says. It would likely be for the best if the farm was burned to the ground. The Dragon-clan would have no choice but to leave.
The store-houses can be found in the huts and towers throughout the herd-lands, not far from Blodwen's hiding spot. Flaming brands used by the Dragon-clan to conquer the farm are likely near the huts.
You should burn down the seed store-houses so that they cannot continue to supply the Dragon-clan.
Blodwen still lingers in her hiding place, waiting for death to reunite her with her new family.
You should tell Blodwen that you have destroyed what was left of the farm.