Farrell Flat is on the old copper trail to the south west of Burra and was once a stopover point for bullock and mule teams transporting copper ore to Port Wakefield. At that time the town had enough work for three resident blacksmiths. In 1880 the railway was put through, connecting the town to Burra in the north and Riverton in the south.
Farrell Flat's main industry is the growing, collection, sorting and distribution of a variety of grains from the surrounding farms. Just before harvest the valley is a beautiful patchwork quilt of gold, yellow and purple.