Achieving sustainable food security for halve of the world population by 2025 is currently under threat because the multifaceted contribution of forest to household food security are shortened by the degradation of forests. This study however, examine the economic implication of forest degradation and food insecurity of farming households in Ibadan-Ibarapa Agricultural Development zone of Oyo State, Nigeria. The contribution of forest degradation to households’ food insecurity and its policy implication on food requirement. Both descriptive and inferential statistics were used to analyze the information obtained from one hundred and eighteen valid questionnaires. The forest-based farmers were sampled through a multistage sampling procedure; villages around the forest reserves in the zone were considered in the selection process and contact farmer. The result revealed that 59.2% of the respondents were food insecure while 40.8% were food secure. The food shortfall index was 0.68 and surplus of 2.51. Fuel wood, agricultural practices, charcoal production, logging for timber, wild fire, industrial expansion, games hunting, excessive grazing, inconsistence in government policies (forest-based) and changes in weather with its events are the main causes of forest degradation in the study area. Non-wood forest products such as vegetables, fruits, games, condiment are source of the peoples’ food where they obtain their daily food requirement. And that, farming experience (P≤0.01), household size (P≤0.1), excessive forest grazing (P≤0.05), income from games (P≤0.1) and logging (P≤0.1) significantly influence food insecurity in the area. Therefore, the study suggests policies that will limit the rate of exploiting the forests to aid forest degradation improvement.