Agriculture is fundamental to the growth and development of any Nation. In most developing economies, agriculture constitutes a major economic activity of the people either as producer, seller or marketer. Agriculture serves as the main foreign exchange earnings and major source of revenue for the government. It is against this background that this study investigates Agricultural policies and rural development in South Western Nigeria, 1945-1960. It examines the governmental Agricultural Policies adopted in the colonial period geared towards achieving increased agricultural production and the various strategies employed by the Regional government towards achieving the set goals. The paper went further to assess the extent to which the objectives were achieved, and what factors impeded the attainment of set goals. The paper adopts historical and descriptive method in analysing issues raised. The paper conclusively observed that the greater emphasis placed on the production of cash crops at the expense of food crops largely contributed to the food insecurity that is now prevalent in Nigeria. The paper made some recommendations on how Agricultural production could be improved upon and be made to contribute meaningfully to the growth and development of Nigerian economy.