Link farms are link exchange websites which request reciprocal links back to them.
They are usually detrimental to your natural search rank at Google, Yahoo, Bing, etc.

Click for Wikipedia's description concerning link farms

"Search engines require ways to confirm page relevancy. A known method is to examine for one-way links coming directly from relevant websites. The process of building links should not be confused with being listed on link farms, as the latter requires reciprocal return links, which often renders the overall backlink advantage useless. This is due to oscillation, causing confusion over which is the vendor site and which is the promoting site." Written for Wikipedia by George Pachter, Pres., Technology Data Exchange

If you want any chance at top ranked natural search positioning then make sure you are not included on any link farms.
Instead, look for 100% relevant, industry-specific web portals with one-way links directly to your website.
Search engine algorithms compare web pages by examining the sites which link to them, referred to as backlinks.

EXAMPLE: The Technology Data Exchange provides 100% relevant one-way links to the electronics industry.
With 1,500 industry-specific categories, supported with over 3,000 TDE-owned product/service descriptive domain names,
the TDE system is by far the most powerful backlink infrastructure available to the electronics industry.

Google keyword: electronics industry sites <<< The TDE system is top-ranked, Google #1
Over 7,000 electronics industry keywords deliver Google #1 natural search results to the TDE system

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