Bring the chicken broth to a boil in a medium saucepan.
Add the farro, 1/2 teaspoon Kosher salt, and the bay leaf. Lower heat to a simmer and cook, stirring occasionally, for about 30 minutes until broth is completely reduced, then remove from heat.
While the farro is cooking, pour the oil into a medium saucepan over medium heat, then add the sliced shallot and cook, stirring occasionally, for 10-12 minutes.
Remove the shallots to a paper towel-lined plate, and set the olive oil aside in a small bowl to cool.
To make the dressing, mix the cooled olive oil with the vinegar, mustard, honey, 1 teaspoon Kosher salt and pepper in a medium mixing bowl.
Place the farro, shallots, arugula, apple, parmesan cheese, basil, and pecans in a serving bowl and top with the dressing. Toss the salad until well coated and serve.