1.To fail in the most complete way, without understanding how. This originates from the linux error code "EIEIO" which refers to an error which makes no sense, and cannot be repaired.
"Jet pilots say that when a jet crashes on a farm the farmer usually sues the government for damages done to his farm by the crash, and the amount demanded is always more than enough to pay off the mortgage and then buy the farm outright. Since this type of crash is nearly always fatal to the pilot, the pilot pays for the farm with his life, and has bought the farm."
With definition 1, the metaphor of buying the farm is often elaborated upon:
*dave makes a big mistake*
jeremy: You just bought the farm.
The minister of agriculture wishes to speak urgently with you.