My Border Collie came from a farm where they had both parents. I was specifically looking for a non-AKC dog. Both were working farm dogs, and the puppies were extremely well-socialized. Having had experience with puppy mills, I would say the criteria is not have both parents on the grounds, but how often the bitch is bred, the conditions the dogs are kept in, are the owners willing to let you see where the dogs are kept, or do they bring the puppies out to see you, and how many different breeds they have for sale. The "kennel" that has a permanent sign advertising puppies of many different breeds is--to me--a clear sign of a puppy mill.
I still have an article from 1994 when Border Collies were first recognized by AKC, basically asking when has AKC recognition ever improved a breed. After seeing a "conformation" class of Border Collies, I agree.
