The movie's plot is similar to that of the play: Dad Rudd (Bert Bailey) has become a successful father but is very tight with his money and oppresses his sons Dave (Fred MacDonald), Joe (William McGowan) and Dan (George Lloyd).

The story is set twenty years after the events of the 1912 play, On Our Selection: Dad has become a prosperous farmer and member of Parliament, while Dave has married Lily and become a father.

[9] It was originally reported that Bert Bailey and Ken G. Hall would write the script, as they had done for On Our Selection,[10] but eventually the job of adaptation went to Vic Roberts and George D. Parker.

Although Grandad Rudd's production had been planned prior to making Strike Me Lucky (1934), its importance to Cinesound grew when that earlier film failed at the box office and the new studio needed a hit.

[13] Cinesound originally intended to follow this movie with a version of Robbery Under Arms but decided not to proceed because of uncertainty arising from a ban the NSW government had on films about bushrangers.