Abstract : The disparities in income distribution among farming households has created a wide gap with high income concentration among small strata of the entire rural population. Poverty becomes evidence with higher degree of inequalities in opportunities and inequalities in outcomes. It was on this note that, this study examines income inequality and poverty status among farming households in Oyo State Nigeria. A multi-stage random sampling technique was used to select 443 farming households in the study area. Cross sectional data was collected through structured questionnaire and the data collected was analysed using descriptive statistics, Gini Coefficient and Lorenz Curve Foster, Greer and Thorbecke (FGT) poverty measure and Probit Regression analysis. The Gini Coefficient was computed as 0.438 which suggests that homogenous population dominates the farm households. The coefficient of age (P ≤ 0.1), credit amount (P ≤ 0.01), household size (P ≤ 0.01), education (P ≤ 0.05), farm size (P ≤ 0.05) and numbers of non-ruminants (P ≤ 0.1) were statistically significant determinants of poverty in the study area. The study concluded that gini coefficient signal homogeneity of the households and the poverty status is considerably high. However, the study therefore recommended that specific interventions related to their occupation to empower farming households.