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Link farms are pages that consist solely of links to other pages but fail to offer any kind of useful content themselves. Site owners typically place their links on farms to artificially boost linking popularity and thus rankings on sites like Google. Some link farms are automatically generated, while site owners manage others as a repository of reciprocal links.

Hello,

A link farm is a website page or set of websites containing a very large list of hyperlinks to different websites without groupings, categories, or any relationship to the site domain name. Many link farm sites have no actual content of their own or standards for link submission. Link farms are disreputable versions of legitimate sites exchanging links based on related topics to provide visitors with some added content value.

Thanks,
John Revl

I agree with above 2 posters. Link farms are just links without giving any utility to the user. Google and other search engines hate link farms. Your site may penalize if you have links from link farms and linking back to them.

A link farm is a system where all the members are linked to each other via a common set of link pages. The result is that all members have a links page with the other members' web addresses on them. Many of these link programs have several hundred or even thousands of members, so by joining you have almost instant access to hundreds of other web sites that point links to your site. This can lead to your site looking very "popular".

Search Engines will penalize if you use link farms!

Pages that consists of little else but links to other sites and usually the sites listed have links back to the farm page. The goal of a link farm is to artificially boost rankings through link popularity and is consequently at risk of penalty or ban.

My idea is,
Many site owners and webmasters do link farming to manipulate search engines. But once get caught by Google there is a big chance of getting banned. Basically it's a very cheap type of SEO practice.