"If you win the second race, the horse will be yours," the new farmer says. Of course, you accept the challenge. You've won the first race, so why should you not win the second one? And you do; the win is yours. "Like I said before, the horse is yours. But you'll not leave the farm with it!", the farmer says and closes the gate of the farmyard. You are looking for a way to escape, but there's just one chance. You ride around the farmyard, slapping the horse to make it run faster and then you take the direction straight on to the gate. The horse whinnies... and jumps. You and Epona are free.
(By the way: Have I already said that this is one of the best scenes of the game?)