Not sure what you are trying to do here
SET @FarmList = '0008144,0007844,0007854,000321,000123';
INSERT INTO @tbl_Farm (ID)
SELECT * FROM dbo.Split(@FarmList, ',')
SELECT * FROM @tbl_Farm
but it is a bad idea to try and do a insert records into the same table you getting the data from.
Also the following code is not the standard way run an update query
UPDATE [DCT-Dev_ExampleData].[dbo].[tbl_FocusAgents]
--update Farm
SELECT * FROM @tbl_Farm
SELECT * from dbo.tbl_FocusAgents fa
INNER JOIN @tbl_Farm f on f.ID = fa.Focus_FocusAgentCd
SET fa.Focus_FarmExceptional = 'Y'
WHERE fa.Focus_FocusAgentCd IN (SELECT ID FROM @tbl_Farm)
it should be somthing more like
UPDATE [tbl_FocusAgents]
SET fa.Focus_FarmExceptional = 'Y'
WHERE fa.Focus_FocusAgentCd IN (SELECT ID FROM @tbl_Farm)
and add any other select statements you need as part of the where clause.