Irrespective of the indicators used for measuring development, the probability of attaining higher rate of growth by industrialized nations is very high. This is because job opportunities are created and consequently have multiplier effect on economic development. It is therefore imperative that for development to take its cause in the third world countries, the transition to modern economy requires some degree of industrialization. In achieving this, these countries should concentrate on those industries that utilize more of their endowed resources as input. Where the resource use is not managed properly, the environment gets destroyed. Hence just as industrialization can spur economic development, it can also generate environmental problems. Unfortunately and because of peculiar problems associated with land availability in Nigeria for instance, the same location harbours farm lands and industrial sites. On this basis, the paper critically examines the impacts of industrial activities on agricultural productivity. Using Ewekoro- a small and all rural community in the south- west Nigeria, the community accommodates a cement factory where farming is the major occupation of the residents. On this note, samples are drawn from the staff of the factory and the residents of Ewekoro in order to determine the degree of the community’s development, extent of environmental change and their consequences on agricultural activities. Descriptive statistics and econometric technique shall be used to analyse the generated data. Finally it is expected that if the factory does not have an adequate method of disposing its wastes, agricultural output will be affected.