McFarland was born in Denison, Texas (not in Dallas or Fort Worth, Texas, as many biographies report), to Emmett and Virginia McFarland. He had three siblings, Thomas ("Tommy," who himself appeared in many "Our Gang" episodes from 1931 until 1942, as long as Spanky had, but had no speaking roles), Amanda, and Roderick ("Rod"). The other two siblings, like most Our Gang siblings, also appeared numerous times uncredited as extras when there were classroom or theatre scenes where many children were needed. Fact|date=August 2007 McFarland lived in an area of Denison called "Sugar Bottom", which got its name in the early 1900s when a train hauling sugar overturned. Young McFarland, who still has relatives in Denison, attended school there briefly before moving to Dallas.
Prior to joining the comedies, Buddy, as he was called by his family, modeled children's clothing for a Dallas department store and also was seen around the Dallas area on highway billboards and in print advertisements for Wonder Bread. This established "Buddy" early on in the local public's eye as an adorable child model and provided experience before cameras. In January of 1931, in response to a trade magazine advertisement from Hal Roach Studios in Culver City, California, requesting photographs of "cute kids," Spanky's Aunt Dottie (Virginia's sister) sent pictures from Buddy's portfolio. An invitation for a screen test soon arrived, which happened that spring, leading to his acting career. In fact on the episode Spanky, the first 6 minutes show Spanky appearing half a year younger. The reson was because that was parts of his screen test done back in the spring of 1931 and incorporated into his second film. His brother Tommy was also screen tested but only used as a part-time fill in.
McFarland's nickname "Spanky" is said to have arisen from warnings by his mother not to misbehave during one of the initial discussions with Hal Roach in his office. As the story goes, he had a habit of reaching out and grabbing things, and on doing so his mother Virginia would say, "Spanky, spanky, mustn't touch!" Spanky himself refuted this version in later years, saying that the name was given by a Los Angeles newspaper reporter. Use of the Spanky name by McFarland for subsequent business or personal activities was expressly granted to McFarland in one of his studio contracts. In later years some in his family would affectionately refer to him as "Spank."Maltin, Leonard and Bann, Richard W. (1977, rev. 1992). "The Little Rascals: The Life and Times of Our Gang", p. 118. New York: Crown Publishing/Three Rivers Press. ISBN 0-517-58325-9]
McFarland died suddenly of a heart attack on June 30, 1993, at age 64. His remains were cremated shortly thereafter. In January 1994, “Spanky” joined fellow alumnus Jackie Cooper to become one of only two "Our Gang" members to receive a star on Hollywood's Walk of Fame.