This quest reward is far too overpowered compared to its difficulty. The archers with impulsive wipe most beginning to mid game monster at the very beginning and this quest is doable very early (one bandit captain and two bandits only).

The village elder tells you "But we are little more than fatted calves for the bandits that hunt us.", hum... The archers could wipe the bandits AND you at this quest level  

Since nerfing the bandit is not fun it could be made a higher level quest with a bandit group that actually is a challenge for those archers?