In the aftermath of the recovery of civilization Equestria was split among multiple factions. The NCR (New Celestial Republic), The Lunar State, Alicornia, Hivelands, and Pegasus Enclave make up the groups dividing Equestria. Residents are supposedly able to freely travel between territories however that doesn’t mean the governments would make it easy. In the early years Pegasi would grant Earth Ponies citizenship just for crossing the border. However they were then subject to laws prohibiting them returning unless they could pay ludicrous amounts of the Enclave’s independent currency which they’d have none of. If they attempt to leave without paying they’d usually be arrested before making it across the border.

That blurb was to set the, well, setting of the image. Depicted is an herbalist (Hazard Remedy) being compensated by a Lunar Power Guard member (Firma Victoria) after their Poison Joke crop had been trampled after an attack on an Enclave Labor Farm.