Turn him out during the day when the bulk of the activity is going on. He should eventually get used to everything that is happening around your farm. After he seems to be comfortable and not paying attention to what is going on around him, lead him around the farm. Walk him up to those things that he seems to be afraid of and simply let him smell and stand near the object. This process may take several trips to get him used to the objects that frighten him. The next step is to carry out the same procedure while riding. Be patient. He will soon not pay attention to the things on the farm that spooked him.
You can also sack out the horse—help him become accustomed to a variety of objects such as towels, saddle pads, raincoats, tarps, umbrellas, etc. The goal of sacking out is to develop the horse's confidence—not make the horse more afraid. To do this, you introduce an object (the least-scary object first) by letting the horse smell and see it. Then rub the object all over the horse's body until the horse stands still. If the horse moves, continue rubbing with the object until the horse's feet stop moving. Then, take the object away and praise the horse by petting it. Continue with that same object until the horse will stand still without tension through various activities with it—rubbing, flapping, throwing, walking it over the horse's body, etc. Introduce the more scary objects as the horse progresses. With machinery, you can also work the horse around the equipment without focusing on the machine to keep the horse's mind on work and not the machinery.
