This poor excuse of a lap dog wants to be a livestock guard dog, or maybe I need her to be???

She was mistreated the first year and half of her life. She was crated 14-22 hours a day and is VERY sensitive to tone. You can see in these photos' first she has a big smile then once I try to get her attention she cowers. Working on building up her self confidence, fine line is I need her to protect the chickens and goats but keep the hawks and coyotes at bay. Last night my lovely wife and I were out admiring the garden over a campfire and the yotes, where less than 100 yards away...

She is eager and loves to please, the key steps here will first patience, then patience, combine that with love and more patience and she will get it.

What kind of dog is she?

She is a white German Shepherd, she has all the skills just not quite the confidence I need her to have. I'm thinking of building some obstacles for her to overcome and maybe that would help.

The shepherd will be bonded and loyal to you. They are not Livestock Guardians. A livestock guardian lives with, bonds and is loyal to their charges including property bonding. I highly doubt your shepherd will be willing to live with your chickens and goats full time and protect, their inclination is to you the master. Herding dogs are herding dogs and are not the best choice for a guardian. She will be eager to please you not the herd.

Patience only goes so far. There are some dogs that are just born with weak nerves. She may be a wonderful pet for you but I would not expect her to be a guardian of livestock. That is what specific other breeds were bred for the Shepherd is not one of them.

Yea, I realize she isn't ed zachary what you would start with, I have low expectations, maybe a halfway decent general farm dog... Either way she is a rescue and has a lifetime pass, hoping maybe I can get some work out of her. Thinking of leaving her over night with the goat and kids, I wouldn't put her in with the goats but give her run of the barn at night.

If she is already showing any signs of separation anxiety and or weak nerves I wouldn't recommend it.
I don't know how long you have had her but it may be best to allow her routine and time to bond with her human masters. I would be hesitant to lock her in an unfamiliar territory as she very well could try to escape, go over a divider and possibly entertain herself with the goats.

Of course I am basing this off the idea you have had her for a short time. Dogs that were crated, kenneled for a long time, especially shepherds tend to get kennel mad. It takes time for them to overcome some of the "madness". Of course I never recommend playing into the neurosis but help to train them out of it.

I am glad you are happy with whatever her role ends up being... a couch potato or hopefully a farm dog.

She is a cutie for sure and sad to hear she was living in a crate for so long. Glad she isn't anymore!

I've had her for a couple of years now, she is very eager and likes to chase birds out of the property, so maybe...

We had friends that adopted an older GSD who must have had some trauma in her younger years. They spent a LOT of time resocializing her, giving her praise and treats at every new experience, and trying to reassure her that she was safe. They took her several times weekly to a leashed dog exercise yard/park to get her comfortable with unfamiliar people and dogs---it was mildly helpful and she is still wary of people she does not see all of the time. Loves her owners to pieces but is not a fan of cats, birds, squirrels, and small dogs.

Both of my dogs showed way too much interest in the chickens, that isn't something I can turn off, I suspect my dogs are chicken killers...

Good for you for giving her a good home.