What happens at the end of "Rip Van Winkle"?

As once can imagine, many people in the village are understandably skeptical about Rip's story. The idea that someone could fall asleep for twenty years is simply too preposterous to believe. So after Rip wakes up from his lengthy slumber and proceeds to tell his tale, he becomes the object of suspicion and mistrust.

Yet by the time we come to the end of the story, we find that Rip is living a comfortable, contented life with his daughter, Judith, and her "stout, cheery farmer" of a husband. Rip is now in a position to pick up where he left off, living a life of slothful ease and idling at the village inn. Not only that, but he's now been accepted by the previously skeptical villagers.

So how did this all come about? Well, Rip's story is verified by an old man called Peter Vanderdonk, who is widely regarded as the most knowledgeable man in the village. He recollects Rip at once and is able to corroborate what appears to be his tall tale. Thanks to Peter's intervention, Rip is now able to live a contented life with his daughter, someone he last saw when she was only a child but who has since grown up into a fine young woman.

What happens to the farm in "Rip Van Winkle"?

In the first part of the story, before Rip Van Winkle falls asleep, he neglects his farm. "In a word, Rip was ready to attend to anybody’s business but his own; but as to doing family duty, and keeping his farm in order, he found it impossible." Rip thinks it is useless to work on his farm because the land is no good and something inevitably goes wrong. But Rip is much more interested in working and helping his neighbors. He also looks for any excuse to get away from his wife. So, he tries to get away from his home and farm whenever he can. Whether his land is good or not, it is neglect that allows his farm to deteriorate. He would much rather fish, hunt, or talk leisurely with the men in town. As a result, his land withers: 

. . . so that though his patrimonial estate had dwindled away under his management, acre by acre, until there was little more left than a mere patch of Indian corn and potatoes, yet it was the worst-conditioned farm in the neighborhood. 

Rip was not a fan of hard work when it was his own. But he would help his neighbor even if that required hard labor. He did whatever he could to avoid his own farm. 

When Rip wakes up from his twenty year long sleep, his house and farm have decayed, having been even more neglected than when he was awake.