What exactly is farming? I hear of it all the time, and what's flamming?

Farming is like setting the turnframes to 10 in your private server to gain more QI.
And flamming is just being rude and acting like a dick.

Just an add to what cham said
Farming can mean to that you play with mmore acounts at the same time to get more qi

So, farming could be, making an alt acc., putting up two toribash servers, going into a private room, turning the turnframes to ten, and winning like 1,000 games per day?

Farming is when you use any method to get QI or tc (Setting low frames, making alts, setting the dm high)

Any method that gets you easy QI or tc in an unfair way could be considered farming.

So, how do admins find out about it?

Well by us player
who report it
Or by someone who saw it
Or was in one of those servers

Not necesary it can be identified by they.

I remember him since I was blue belt he ALWAYS play tourneys.