Having had some time to distance himself from the controversy and negative opinions, Dylan once again explains that there was no ill intent in his actions, even as the person with whom he is speaking attacks him, despite just saying they were not a member of his most known critics.

Dylan used a oedipal metaphor here. In the classic history, the king of Thebes kills his father and has sex with his mother, and for this reason he shame himself and “clawed out” his own eyes.
Dylan used this accion, but in his case the woman, the folk music, is who punish him, who used his body as atonement and clawed out his eyes, because the folk music are telling him that he must be ashamed, and that he must be to pay the price for his accion.

“From the farm” could be a reference to “Maggie’s Farm,” a song Dylan wrote as a rebuke to fans who objected to his move from folk to electric guitar.

In a turn similar to the one Common would later use on “I Used to Love H.E.R.,” this line casts the listener’s initial perception of the song in a new light: that the people he’s talking about are metaphorical representations of his interactions with the folk and rock scenes. Where Common’s made it explicit that the woman was a stand-in, Dylan is more ambiguous opening it up to the listener to ascribe meaning.