The 21-year-old has been merciless with the boot this season currently having not missed a kick in 29 attempts as he competes with Leicester Tigers' Toby Flood and Gloucester's Freddie Burns for the No.10 shirt.
And with Farrell taking a magnificent 32-point haul against Racing Metro in a 37-28 win in the Heineken Cup, slotting 11 goals from 11 attempts, Lancaster accepted the need for quality from the tee.
"A proven goal-scorer is crucial at the highest level," said Lancaster.
"It does have an impact on the opposition and Owen's performance at the weekend showed his ability to punish the opposition."
Farrell burst onto the scene in last season's RBS 6 Nations at inside centre before taking the No.10 when Charlie Hodgson was injured against Wales.
And with the campaign opener with Scotland on February 2 close by, Lancaster insists Farrell is in an outstanding place to take control of the game from fly-half.
"From the moment he came into the England camp as a 20-year-old his maturity, his game understanding and his inner confidence and temperament has shone out," he added.
"It was that which gave me the confidence in the Six Nations last year to promote him.
"It was a long season for him and he achieved a huge amount. You can't fault him at the moment. He's playing extremely well."