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Is it true that the ONLY POSSIBLE way to complete this quest is to ask Torlof (during Mercenaries joining initiation) to give you Collect the Rent (not Drive Away the Militia) quest, then go to Bengar and help him with militia after which you can demand to let Balthasar bring the sheeps to the pasture.

What I did:
1. Talked to Torlof
2. Selected Drive Away the Militia
3. Talked with Balthasar
4. Talked with Bengar
5. Killed militia
6. ???
7. No profit, this quest is not completed, i can't initiate any new dialogue with Bengar or Balthasar.
This question / problem has been solved by Hrothmeirimage
I'm sorry, it' my own mistake:
6: Report back to Torlof about militia
7. Talk to Bengar about Balthasar
I had the exact same problem. Killed the militia, went all the way back to Balthasar, no new dialogue, back to Torlof, quest still in the log, back to Bengar, new dialogue, back to Belthasar. Tons of fun.