I'm afraid that appears to be Post-Mint Damage. If I had to guess why it was damaged, I would venture to guess that this farthing was used as a cufflink or something of the sort at one time or another.
Farthings are made of Bronze, so this one has been plated with silver or something. Maybe it was made into a button or pin or something. Damaged, but cool. You can't spend it anywhere so no value in that sense, but it's a low value item. A cud would involve the edge of the coin, here is a photo of one of those. from cuds-on-coins.com
One question. If the coin was previously used as a cuff link wouldn’t there be damage on the other side of the coin?
