A method for optimizing auxiliary loads of a wind farm having a plurality of wind turbines includes tracking, via a farm-level controller of the wind farm, operational usage for one or more auxiliary components of at least one of the wind turbines in the wind farm as the operational usage for the one or more auxiliary components induces a load on the auxiliary component(s). The method also includes determining, via the farm-level controller, a power consumption of the load induced on the one or more auxiliary components based on the operational usage. Further, the method includes receiving, via the farm-level controller, at least one additional parameter of the wind farm. Moreover, the method includes implementing, via the farm-level controller, a control command for one or more of the one or more auxiliary components based on the power consumption and the at least one additional parameter.