" so I volunteered. They do not pay me, but I get full use of the facilities, and they assigned me a few students . In return, the students and I make some stuff for the farm. All in all, a decent arrangement, or so I thought."
----very good arrangement it makes both parties happy and no one is hurt
"A fellow blacksmith from another historical farm heard about this and reminded me that the worst thing that a blacksmith can do is to sell his goods too cheap."
----True you should never sell your self cheap, but this applys to everything in life not just blacksmithing.
" And I have cheapened other blacksmiths' production, that they may have depended on for their livelihood, by giving away things to the farm."
----untrue. you have given away product yes but they have also given you something..space to work use of their facilities...fair exchange if both parties are happy.
"I really do not see it this way. The staff at the farm has always treated me with the greatest degree of warmth and respect. Because of the budget, they are not able to pay market price for the product. During the recession, they had to cut programs and staff, due to lack of donations, and it was truly sad. The other blacksmith said that it was OK with him, because I did not directly compete with his line, but that did not excuse me from the violation of an ancient ethical code."
----Quite frankly this other blacksmith is talking through the wrong end of his anatomy his words and attitude stink and should be taken as they are spoken , as the words of a bitter and jealous hypocrite.
keep on working the way you are I wish that I could work out such an arangement, passing on the skills you have learned in a historical setting such as you seem to have is wonderfull and I envy your luck