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After the dissolution of Uncle Tupelo in 1994, Farrar formed the rock group Son Volt, whose original lineup released three albums in the late 1990s, before undergoing a hiatus in 1999. In 1999, Farrar was invited to participate in the tribute album for Moby Grape co-founder Skip Spence, who was terminally ill with cancer. The album, More Oar: A Tribute to the Skip Spence Album (Birdman, 1999), was an album of cover versions of the songs on Spence's only solo album, Oar (Columbia, 1999).
In 2005, the band re-formed with a different lineup and has since (as of May 2009) released four additional albums.
Farrar worked closely with keyboardist Steven Drozd of The Flaming Lips during the recording of Sebastopol. Eric Heywood, Mark Spencer from the Blood Oranges, and the rock group Canyon have often accompanied Farrar in his solo recordings and performances. Spencer is now a full-time member of Son Volt.
In 2006, Farrar announced the formation of a new band, Gob Iron, with Varnaline's Anders Parker. The songs which would make up their debut album were recorded in autumn 2004, while Farrar was in the process of recording a new Son Volt album.
Farrar collaborated with Ben Gibbard (of the indie rock band Death Cab for Cutie) to create all of the music for the soundtrack for the 2009 documentary film One Fast Move or I'm Gone, about Jack Kerouac's time spent at Big Sur. The soundtrack was released on October 20, 2009.
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