Solution:
The answer is 5 farmers.
Since there are 16 farmers and each must play the other, that results in
16C
2 = 120 chess matches.
If there were 120 winners and no draws, then that results in 600 coconuts, but Keloğlan only distributed 550 coconuts.
So, trying several combinations, the one that works is 70 wins and 50 draws.
The 70 wins yields 350 coconuts and the 50 draws result in 200 coconuts (because 2 farmers get 2 coconuts for each draw).
If ten farmers draw with each other (leaving six other farmers), that results in only 45 draws. So, one other farmer must have some draws.
Therefore the maximum number of farmers that did not have a draw is five.