Goblin befriends children on a farm and help them

I remeber a movie from probably late 80s/90s about a hobgoblin/dwarf/kobold who lived somewhere on/near a farm – in tunnels underground maybe – who always had to have gold/coins on him, in his pockets, otherwise he would blow up/get bigger ??? and disappear or something. I think he was ginger with a beard (kind of like a leprechaun).

He didn’t like children but he eventually befriended two siblings, boy and girl, and was helping them against probably an evil stepmother or something?

I remember it was happening on a farm and sometimes in a barn, I think at some point they were leaving coins under a metal milk can or something.

He also had like an  elaborate alarm clock or something?

It was a family movie, very likely that it was German or Dutch or something.

Please help!

5 thoughts on “Goblin befriends children on a farm and help them

    1. THAT’S IT! Omg thanks, I don’t know how this didn’t show up for me, I literally have been searching in Polish, English and in German (I thought it was a German film). I was only getting the Leprechaun horror film as a result!

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