Bangladesh is an agrarian-based developing economy that has recently achieved accelerated economic growth via its industrial sector. Such levels of industrial development have increased energy demands, with negative impacts not only on human health but also on agricultural land and biodiversity. These forms of environmental degradation pose risks to rice production, the main agricultural crop, due to associated declines in soil, water, and air quality. This study intends to analyze rice farmers’ level of awareness and perception of the impacts of environmental degradation, and factors influencing the awareness. Primary data were collected from 300 rice producers in six districts in Bangladesh during August-September 2019 by a structured questionnaire, where agricultural arable lands have been degraded the most. A multinomial logit model has been used to explore the relationship among key factors. Farmer awareness levels varied according to age, farming experience, farm household income, adoption of inclusive agribusiness, access to extension workers, and distance from the nearest industrial zone. There was spatial heterogeneity among rice grower perceptions of the impacts of environmental degradation. Government guidance and some socio-economic factors could reshape and improve the farmer awareness levels on natural degradation, to facilitate the maintenance of farm operations and food security nationwide.