After a few minutes, our conversation went something like this:
"Scared? Of what sweetie?"
"Sneeze." - as she points over to the corner of our patio.
"Oh, Sweetpea, that is just a worm. He won't hurt you."
"It's dead. He won't get you."
"Scared. Get you." (she gets pronouns mixed up)
"Honey, it's a worm, not a snake."
"No snake. Scared. Sneeze."
"It's dead. Just draw somewhere else."
At this point I showed her there was nothing to be afraid of and moved the one large one that was still half alive and slightly moving up onto the lawn.
Then we repeated the conversation about 20 times in some variation or another about all the other worms who just didn't make it through the snow storms. (There weren't that many.)
We've never her told her to be afraid of bugs or anything else for that matter - goodness her room is decorated in bugs and we watch "A Bug's Life" at least once a week. And she kept insisting it wasn't a snake, but a sneeze. I did get her to say worm a couple of times, but always said sneeze right afterward. Granted some her real sneezes in the last couple of weeks have looked like green worms coming out of her nose, but I don't think she would grasp that correlation.
Finally we opted to come inside and watch Elmo instead. Need to find those Seasame street shows with the worm... and sweep before we go outside to play again.
I did convince her to go back out and take a picture with the drawings she did do.