Peter is a young boy, living on a farm. One day, whilst out doing chores for his father, he comes across a strange white stick floating in the stream. He reaches out and catches it—and finds an exciting new friend in the process. Ninnyhammer is the local village simpleton, but Peter knows there's more to him than that—he's a magician and the white stick is his magic wand.

Ninnyhammer is so grateful that he starts to help Peter and his family with their struggling farm—making the sow have more piglets, helping the corn to grow faster, and the hens to lay twice as many eggs. But Peter wants to do something for Ninnyhammer in return. Can it really be right that his friend has to bed down in a hole with foxcubs? And can Peter persuade his dad to help?