h2a, nobody is saying to pack up and move right now.
Regardless of this current situation, but even moreso because of it, you should determine what all of your exposures are, and take measures to protect them.
For instance, are your horses at risk? Are there children around? What are the fire hazards?
We don't know exactly what you are dealing with, but from how you describe it, I think you've got to consider safety first. If that means turning the other cheek right now for the pond incident, well, I don't know what to say.
I could also add this. If I had a neighbor that did such an overt act of disrespect to me, and being a man, I would still consider what further damage could be done to me BEFORE I reacted.
