> 1.Is my recollection of meaning and usage correct?
Yes, it is correct and that is because []{} is closer to "peasant" than to "farmer" in feeling.
> 2.In what type of settings would a non-native Japanese speaker be able to say " " and not be judged as an elitist jerk? In fact, I'd hope to be judged as being someone who knows clever slang.
Whether you are a Japanese-learner or native speaker, there are basically no situations where you can call a farmer a without offending someone. The only exception would be when a farmer calls himself a , which happens quite often.
We have the term , which sounds more "correct" than the plain but it still would not be used much in public by the more careful speakers -- in particular, by the media. In private conversations, though, is still heard fairly often.
The safest word choices would be {} or .