Engram and Item Farming - Destiny wiki

Make your way over to the Skywatch (during free roam or during a mission) and kill the never-ending stream of enemies for lots of items and engrams. I was getting an engram or normal item per minute.

Engrams and items are dropped completely at random and are not based on the level of the enemy you kill, so to get the most engram drops you need to kill as many enemies as quickly as possible. 

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Whiplash's picture

Another good farming spot is near the end of The Nexus strike, Right before dropping down to fight the boss, there's a large group of Vex before that point, and a convenient cliff that your group can fall from to respawn mere seconds away from the enemies.

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