The Red Rose travel to Cardiff on Saturday looking to secure a Grand Slam victory, while the Dragons can still retain their title with a winning margin of eight points or more.
The Welsh possess a more experienced side than the young England team, and Farrell believes that his side face a real test at the weekend.
"We haven't been in this position before, going for a Grand Slam," Farrell told Sky Sports News. "To put it in perspective, 11 of our guys haven't even played at the Millennium Stadium before. I think it's a tremendous position to be in so early in our development.
"We are up against it; we are up against a good experienced side who have been there and done it.
"Experience counts for a lot on these big occasions but we back our culture and belief; we've been pretty good at meeting challenges head-on."
England face Wales at the Millennium Stadium at 5pm on Saturday.