Ezra "Penny" Baxter, Jody Baxter's father, lives with his family in the rural Florida scrub after the Civil War. Raised under a strict minister father who forbade leisure, Penny consciously cultivates greater generosity and patience in raising Jody. His diminutive size earned him the nickname "Penny" from Lem Forrester. Penny served in the Confederate army.

A farmer and hunter, Penny scrapes a meager living from the land. He possesses deep knowledge of the natural environment, survival skills, and strong moral integrity, earning community respect. He teaches Jody wilderness navigation, respect for animals, and the balance between human needs and nature. Their central relationship provides Jody safety, acceptance, wisdom, and nurtures the boy's curiosity about the natural world.

Penny demonstrates resilience and practicality. After the bear Old Slewfoot kills their sow, he trades a dog to the Forresters for a shotgun despite reservations, later confessing the dog's poor hunting ability, which the Forresters ignore. Bitten by a rattlesnake, he kills a doe to use its liver to draw out venom; this act leads Jody to adopt the orphaned fawn, Flag. Penny allows Jody to keep Flag, recognizing its importance to the boy's emotional growth despite scarce resources.

His integrity shows when he directly confronts the Forresters for stealing the Baxters' hogs. Later, after wolves kill a calf, he pragmatically collaborates with the Forresters to hunt the pack, setting aside grudges. He eventually hunts down and kills Old Slewfoot following repeated livestock losses. Penny also intervenes in a fight between the Forresters and Oliver Hutto to protect Hutto when the odds are unfair.

Penny's health declines sharply after a hemorrhage while uprooting a tree stump, forcing prolonged bed rest. This limits his ability to manage the farm during a critical period when Flag repeatedly destroys essential corn crops. Though initially advocating solutions like building fences, he ultimately orders Jody to shoot Flag when the threat to their winter food supply becomes unsustainable. This pragmatic decision catalyzes Jody's maturation.

After Jody runs away following Flag's death, Penny welcomes his son back without condemnation, reinforcing their bond amid harsh realities. His experiences underscore themes of responsibility, sacrifice, and the transition from childhood innocence to adult burdens within the family.