The agricultural system has long been a cornerstone of human civilization, providing food security and supporting economic growth worldwide. With an increasing population, global food demands for human consumption will need to be increased by 70% before 2050. Besides fulfilling food requirements, the agricultural sector produces waste, and the improper disposal of such waste adversely affects the environment. Climate change and dwindling fossil fuel supplies are driving interest in using agricultural solid waste (ASW) to lower greenhouse gas emissions (GHGs) and get more value from resources. This study explores the application of life cycle assessment (LCA) as a decision-making tool to examine the environmental feasibility of converting ASW into valuable biofuels. The LCA methodology allows us to comprehensively assess the entire life cycle of ASW valorization, i.e., from waste generation to the production, utilization, and disposal of biofuels. Furthermore, the analysis sheds light on the trade-offs and environmental hotspots of different valorization pathways, aiding in the identification of sustainable practices. By harnessing the potential of ASW as a resource, the decision-makers and stakeholders can decide on an environment-friendly scenario, which ultimately paves the way for a more sustainable and circular agricultural system.