In the agricultural industry, circular techniques seek to minimize waste, improve resource efficiency, and foster ecosystem health in order to develop sustainable and regenerative systems. Although they have great promise, a number of obstacles prevent their widespread use. A biorefinery concept can increase the potential of agricultural value chains; however, there are several obstacles to overcome, including the lack of advanced technology for biorefining to produce value-added products, investment costs, restricted access to advanced technologies, inadequate market development, regulatory barriers, and gaps in farmer knowledge and skills. Significant challenges are also posed by resource degradation and climate change. Nonetheless, there are a lot of advantages to circular agriculture. These consist of lower environmental impact, increased soil health, cost savings, increased resource efficiency, and new revenue streams. Technological developments, cooperative initiatives, and supportive legislation can all help to speed up the shift. Three tools that cover all the sustainability components are part of the proposed framework for sustainability evaluation: life cycle assessment, social life cycle assessment, and cost-benefit analysis. In order to take into account resource prioritization, ecological capacity constraint, and ecosystem protection, respectively, these techniques are further supplemented by Nature-based Solutions, material flow analysis, and ecological footprint. Unlocking the long-term benefits of circular practices and removing obstacles require strategic investments and knowledge-sharing networks, which will help create a more resilient and sustainable agriculture industry.