|Funny Farm is not an actual subject, meaning it is not in the actual version of Toontown and/or was scrapped.|
Funny Farm was a planned neighborhood in the early development stages of Disney's Toontown Online, among a total of "eight or nine" neighborhoods that were originally planned for the game. According to Jesse Schell, the Streets system didn't work quite well with the farm aesthetic, resulting in the neighborhood being scrapped.
Concept art from Disney's Toontown Online
On March 12, 2016, Jesse Schell posted the original concept art map (shown on the right) on his Twitter that was seen in the 2003 Toontown Online commercial clearing up some past rumors, one of them being Funny Farm. As shown in the image, Funny Farm was located near Donald's Dreamland, having streets connected to there, as well as Minnie's Melodyland and the also cut Goofy Stadium, now known as Goofy Speedway.
Funny Farm was, as the name implies, planned to be a farm playground. However, the playground would have had a black and white color scheme, paying a tribute to the classic Mickey Mouse cartoons. The playground owner was debated within the development team to be either "Farmer Goofy" or "Farmer Donald"; in particular, "Farmer Donald" was already featured in some older Disney cartoons.  However, Jesse Schell replied to a comment on his reveal of the beta map on Twitter saying that the playground would have also included Oswald, Clarabelle and Black and White Mickey, which were ideas from Bruce Woodside. 
Due to Funny Farm never making it past the conceptual stage, it is unknown where it would have fallen in the players' neighborhood progression.
The Funny Farm streets would have been populated with barns and farm buildings, and having the streets connected to Donald's Dreamland, Minnie's Melodyland and the also cut Goofy Stadium, now known as Goofy Speedway. However, this wasn't a popular idea among the developers, as it wasn't "farm-like enough"; they wanted to see "big, open fields for it to be a farm" and it wouldn't have supported the street system already in place in other neighborhoods. The streets system was the biggest reason why Funny Farm was never released.
- Rumors about Funny Farm among players started when a user made the picture on the right as an April Fools' joke. It is unknown where they got any information about Funny Farm (note the picture features a doodle named Fluffy, which is not related at all to Funny Farm). Most players accepted it as just a rumor and nothing more until Jesse Schell confirmed in June 2015 that Funny Farm was an actual neighborhood that got scrapped early in development.
- Funny Farm was bought up again sometime after Toonfest 2006. It was discovered when the player moved their mouse above Goofy Speedway on that blurry location showing the name "Funny Farm". This led to players believing that Funny Farm would be the next Playground to be released.