Oh Jenn! I am so sorry to hear this!
I can imagine how frustrated you must be right now, it got me upset just reading it and I'm not even there in that situation! I would absolutely report them to someone, I would try to find someplace that would place the dogs in homes something like that.
Perhaps, if they still owe you wood, they would be willing to trade a few dogs instead, especially if they are not "working" within her breeding program. If you couldn't keep them then at least YOU could find homes for them. I'm sure there some people on YT that could help you out and at least those dogs would be safe for now. Stories like this just break my heart, I cannot imagine how those poor dogs must be feeling, I wonder if they even know a better life? You know, what its really like to be loved and cared for and what it's like to live in a warm clean home.
I really hope things work out for those poor dogs. I'm in Florida but please let me know if there is anything I can do to help you ok?
Keep us updated!