What does funny farm mean in the following lyrics?
They're coming to take me away ha ha
They're coming to take me away ho ho hee hee ha ha
To the funny farm
Where life is beautiful all the time
A funny farm is a slang term for a facility for psychiatric patients, a place where they take care of crazy people. They might get drugs there that make them feel happy; that may be why "life is beautiful all the time" there.
That is commonly known these days as a psychiatric ward; more commonly known in the past as an insane asylum or just asylum, or mental ward or mental hospital.