Born in Apohaqui, New Brunswick, McFarlane worked for Royal Insurance in Saint John from 1953 to 1993, retiring as Branch Manager.
In the 1999 election, he was elected as a Member of the Legislative Assembly for the provincial riding of Saint John Lancaster as a Progressive Conservative and shortly afterwards became the New Brunswick Minister of Labour.
McFarlane promptly returned to politics in 2004 when he was elected mayor of Saint John by defeating incumbent Shirley McAlary by a margin of over 25%.
Ironically, one of McAlary's key backers was Abel LeBlanc.
McFarlane faced severe and lasting criticism and allegations of corruption and incompetence for his role in granting Irving Oil tax concessions in 2005, concessions that have cost the City of Saint John approximately $75 million over ten years, with a potential total loss of over $180 million.