Wakefield Council gave plans the go ahead this week for the land on Waggon Lane, to be transformed in honour of the 19-year old soldier.
Rifleman Farmer, of the 3rd Battalion The Rifles, was killed when an improvised explosive device (IED) went off in Sangin, near Helmand Province, Afghanistan, in January 2010.
The former Minsthorpe Community College student, of Third Avenue, had been trying to keep his comrades safe by leading the way with a metal detector during night patrol.
Plans were submitted by Upton and North Elmsall Parish council last year but have now been given the final go-ahead.
Chairman of Upton and North Elmsall Parish Council, councillor Shaun Hodson, helped push the project and is pleased plans can finally get underway.
He said: “It’s great news and am looking forward to get the memorial garden started.”
The next stage is to get approval from the Government.
The community has helped raise more than £10,000 towards the project by holding fundraisers during the past two years.