The Dungannon rider suffered chest and pelvic injuries in the crash on 12 May.
His condition was described as stable on 16 May and he was moved out of intensive care.
The 40-year-old and Dan Cooper came off their bikes on the the Black Hill section of the course.
English rider Malachi Mitchell-Thomas was killed in a crash at the same part of the course on Saturday, 14 May.
Cooper was taken to the Causeway Hospital in Coleraine with shoulder injuries but was later discharged.
Farquhar is a well known-figure in motorcycling and has won five races at the North West 200.
He retired from the sport in 2012 following the death of his uncle Trevor Ferguson at that year's Manx Grand Prix in the Isle of Man.
However, Farquhar resumed his road racing career in 2014, saying that his family backed his decision to return.

Company Sgt Maj Nelson Carter, 29, was awarded a posthumous Victoria Cross for his bravery in the Battle of the Boar's Head, in which he died on 30 June 1916.
A memorial paving stone was unveiled in Eastbourne Pavilion Gardens and at the war memorial in Hailsham High Street.
He was educated in Hailsham but lived most of his life in Eastbourne.
He was survived by his daughter and wife, who accepted the Victoria Cross on his behalf from King George V.
Councillor Pat Hearn, the mayor of Eastbourne, said: "Nelson Carter was a true hero who showed incredible bravery in leading his men under intense fire.
"It's very fitting that we honour his memory almost 100 years to the day since his death and that his family and the people of Eastbourne will have the chance to remember him and the sacrifices he made."
A plaque commemorating his life can be found on his home at 33 Greys Road, Old Town in Eastbourne.
Hailsham mayor, Councillor Nigel Coltman, added that the town was proud to commemorate his "heroic actions and the commemorative stone will provide an enduring legacy for him".
Motorcycle racer Ryan Farquhar, who was hurt in a high-speed crash in the North West 200, is seriously ill and has returned to intensive care, the Belfast Trust have said.
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A World War One soldier has been commemorated with the unveiling of two permanent memorials in the East Sussex towns where he lived and was educated.