Months after Babe, Babe and his master Arthur Hoggett are given a welcome home parade after Babe's success as a "sheepdog". One day, Babe inadvertently causes an accident and Arthur ends up in a hospital. Esme is unsuccessful tending the farm alone. Soon, two men from the bank arrive to inform Esme that she and Arthur have not paid their rent on time, and they will soon be evicted at the end of the month. Esme locates a letter from a fan saying that if she enters Babe in a sheepdog herding contest, held at a fair far away, she will win a large amount of money. She decides to enter Babe and they leave the farm together.