This study analyses the impact of income inequality on agricultural production among sample of farm households in rural and urban areas of Ekiti-state, Nigeria. The study used primary and secondary data. Descriptive analysis, Gini coefficient and Regression analysis were used to analyzed the data. The results showed the socio-economic characteristics of farm households in both rural and urban areas. The results also indicated that income inequality is higher in urban than in the rural areas and that income level, farm size and household size are the factors that contribute to inequality in both rural and urban areas. The study however recommends that production technology should be improved, infrastructural facilities should be provided, access to credit and land should be made easier and that large family size should be discouraged to facilitate a more equitable distribution of income and increase agricultural production.