My feelings on this situation might be a bit different than others, how I would respond would be based on what I would hope for in the future. If you give the wood for free that would be a very neighborly gesture and would likely be well appreciated, you can tell him it is return for help he has given you. I also believe that since he seems like an honest guy, who knows the effort you put into your wood then it will likely be the last time he asks you for wood since he won't want to feel like a freeloader. I don't see anything wrong with handling it like this, might be the way to go if you are the type who wants to be a good neighbor but also gets uncomfortable at the thought of seeing your woodpile Shrink without feeding your stove. If you could spare the wood and like the idea of potentially making a few bucks each fall then sell the wood, could become a regular deal. Nothing wrong with that either.