What makes it a puppy mill...

Is it essentially the same dogs bred?  Are the bitches bred every season?  Are there health clearances for the diseases conditions known in the breed?  Although it may not meet the horror conditions that make the media, it still may be a mill.  Do they have a contract?  Do they rescue the breeds and take back any puppy they produce at any time in its life?  Those are some of the things that I think seperate out the responsible breeders from those who fit either BYB or mills.  Do they have USDA status as a commercial breeder?

Sounds like she's a big step up from a miller, but definately a backyard breeder, UNLESS the parents have been proven in some way and tested for any and all genetic conditions common to the breeds.
 
One down the road from me has always had rotties and dobies....now they've added POMS!!  Geeze!  Must be figuring out that big dogs are harder to place in this area.

I wouldn't think about it in terms of defining the breeder. I would think about it in terms of the pup you'd get.

With eighteen pups at one time, there is no way any individual pup could get the kinds of human-dog interactions or dog-dog interactions that make a dog a family pet and not livestock.

It's all about socialization. I would never pay any money for a puppy that wasn't being very well socialized--not just in terms of one litter at a time, but I ask about things like different kinds of people coming over including kids and men and folks of all different colors, puppy temperament testing, loud noises, and whether the dogs are being bred for anything *beyond* conformation or "pet quality".

I trust a breeder that wants their pups to do well at a *job* like obedience, agility, field trials, etc, and who therefore puts their pups in front of all kinds of people and experiences. Otherwise, you are doing catchup, turning a livestock animal into a pet.

I agree, I don't think it's that important to figure out whether this is a puppy mill or a BYB (though I would say BYB - which is quite a broad umbrella). Either way it doesn't sound like a good place to buy a puppy. Explain to your friend that she should be concerned about whether the breeders are doing the right genetic testing and socializing the puppies properly... beyond that it doesn't much matter "what" they are.

Totally off-topic but I see you are in Nebraska - I'm moving there in October!