The present disclosure is directed to a system and method for assessing farm-level performance of a wind farm. The method includes operating the wind farm in a first operational mode and identifying one or more pairs of wind turbines having wake interaction. The method also includes generating a pairwise dataset for the wind turbines pairs. Further, the method includes generating a first wake model based on the pairwise dataset and predicting a first farm-level performance parameter based on the first wake model. The method also includes operating the wind farm in a second operational mode and collecting operational data during the second operational mode. Moreover, the method includes predicting a first farm-level performance parameter for the second operational mode using the first wake model and the operational data from the second operational mode. The method further includes determining a second farm-level performance parameter during the second operational mode. Thus, the method includes determining a difference in the farm-level performance of the wind farm as a function of the first and second farm-level performance parameters.
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