A websites’ popularity is judged by the number of inbound (incoming) links from other sites, as earlier it was considered that more the links a site had, the more popular it was.
So, to garner more inbound links, sites joined linking programs whose method was ”we give you ‘number’ of inbound links if you can provide us ‘number’ of outbound links”. This is a link farm which is “linking of multiple sites whether relevant or not” and uninteresting sites had higher ranking than better ones.
For example: A school website having links from educational sites (tuitions, courses etc.) is acceptable, but if have links from unrelated sites (political etc.), becomes a “Link farm”, which is spamming and unacceptable.
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