This paper explores the dynamic transformation of modern agriculture through the integration of Ethical AI within Smart Agriculture 4.0. It addresses the complex ethical considerations associated with deploying advanced technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) in agricultural settings. The study highlights the multifaceted applications of Ethical AI, emphasizing its vital role in overcoming persistent agricultural challenges. It elaborates on the interplay between sensor networks, IoT, and precision agriculture as pivotal elements of Ethical AI-driven solutions. Illustrations of successful implementations provide insights into real-world applications and the ethical implications of these technologies. We have included several case studies that deepen the understanding of ethical and practical impacts, demonstrating how resource optimization can enhance agricultural outcomes. The emphasis on responsible technological development assures the audience of the ethical integrity of AI in agriculture. The paper concludes by forecasting future trends and ethical advancements in IoT and AI applications, advocating for the ongoing development of technologies that promote sustainable and ethical practices in Smart Agriculture 4.0.