One philosophical explanation is that, to us, the structural integrity of our body is sacred and we generally don’t like to be reminded that it is made of flesh and guts. Therefore, things that remind us of the fact that this structure could burst or alter (such as blood, urine, excrement, saliva, semen etc.) revolt us in some way, even if they fascinate us at the same time.* As flatulence is a fairly innocent reminder of our bodily functions, doesn’t leave a mess and it gives a funny noise, it’s generally considered funny and non-threatening in most cultures.
*This is sometimes given as one reason why we seek out movies with horror and gore, as it’s a safe way to test our limits and experience the rupture of the body without any danger to ourselves.
Other people do not want to smell it, so it is rude to fart on purpose, and embarrassing to fart on accident.
As for the humor, I am not sure, personally I never found it to be fundamentally funny. One common reaction to embarrasing stuff is to laugh about it. Farts are also often unexpected, and surprise is a major factor in comedy.
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