The Bandit Town Guard can be farmed by using as little as a bow and arrow. The guard takes 5 headshots with a Hunting Bow, or roughly 3 with a Compound Bow.
Farming these NPCs is easy if you follow these steps!
- Find a spot like ---> http://prntscr.com/kmerwu
- Fire at the guard from below, the guard will be aggravated but won't be able to shoot you if you crouch.
- Shoot the guard until he is dead, loot his remains, go back to your spot and repeat.
Just note that sometimes the guards run out of the building searching for you, this can make it difficult as they might find and kill you. You also should do this with an ally as running out after killing a guard would be a death trap.