Actually, it means that you live in the middle of nowhere - in the boonies - out in the boondocks - in an extremely rural or out-of-the-way area. Destination has nothing to do with it.
If the nearest place to buy gas for your car is an hour's drive away, you live in bumfuckegypt!
Nickname given to bales of marijuana thrown overboard or out of airplanes. Origin is reportedly from members of the US Coast Guard in the area of Southern Florida.