This study analyzed the effects of oil spillage on the standard of living of farm households in oil-spilt and non-oil spilt agrarian communities of Bayelsa State, Nigeria. A multistage random sampling procedure was adopted in selecting 120 respondents. Primary data collected were analysed using descriptive statistics and econometric models. The percentage estimates of the mean per capital expenditure of the farm households implied that the level of standard of living among the two groups of farm households in the study area was low. The results from the regression analysis show that the coefficient for education level of the household heads is positive and significant at 1% for the oil spilt households but insignificant in the non-oil spilt households. Also, labour cost is significant at 10% and positively related to standard of living for oil spilt households while it is significant at 1% for their counterpart households. The coefficient for the incidence of violence is negative and significant at 5% for the non-oil spilt farm households. The study recommended that land remediation measures should be included in land policies to improve farmers’ productivity in oil-spilt areas.