Both. I like the concept of a farm that smells might elicit, but certain smells (or mixtures of smells) can be annoying. Plus, it depends on things like time of year, type of farm or activities. Like during manure spreading season it might not be too pleasant - but if it's a fruit farm, then harvest season could be very aromatic!
The 2nd meaning is when you're in bed with someone, you let out a smelly fart, and then you hold the blanket over their head so they can't escape the stench.