Introduction: Current agricultural production and distribution systems including those in Kurdistan province of Iran, largely operate within a “linear economy” framework. This approach is characterized by the exploitation of natural resources for production, with a considerable portion of these resources ultimately lost as waste, becoming contaminated and exiting the economic cycle. In contrast, the Circular Economy (CE) model in agriculture seeks to recycle waste products and recover lost inputs, reducing dependency on resource exploitation and promoting sustainable agricultural practices. The CE model aims to minimize waste and make optimal use of resources through a regenerative approach, in stark contrast to the linear model typical of traditional capitalist economies. In the linear approach, the production and consumption chain generally follow a pattern of raw material extraction, production, consumption, and disposal, with residual waste discarded to accommodate further consumption. Adopting a circular economy perspective is particularly vital in agriculture and natural resource sectors, especially as population growth continues to increase food demand globally and the same is true for Iran, including its Kurdistan province. The urgency to adopt circular practices is underscored by the finite availability of agricultural inputs and natural resources, particularly water, which are increasingly scarce.
Materials and Methods: This study was conducted in Kurdistan province to facilitate a deeper understanding of the challenges and transitions necessary to implement a circular agricultural economy. Following a comprehensive review of relevant literature and expert feedback, relevant factors and components were identified as potential obstacles to adopting a CE model in Kurdistan. These factors were then analyzed using the Interpretive Structural Modeling (ISM) approach, a structured methodology that assesses interrelationships between criteria and indicators by categorizing them into multiple levels. The ISM helps delineate the levels of interconnections among dependent and independent indicators, either individually or in groups, allowing for a thorough analysis of the relationships among various aspects defined for the study. Initially, the ISM organizes the influential factors across different levels, then elucidates the relationships among these factors across each level. For data collection, a questionnaire based on the ISM principles was designed. 
Results and Discussion: The analysis revealed that three critical factors including illiteracy and/or low literacy levels among farmers, reliance on traditional and subsistence farming, and the fragmented and small-scale nature of agricultural plots in Kurdistan province were pivotal challenges within the circular agricultural economy. As shown by the study results, the concerned factors, identified as key variables by experts and interview participants, had the potential to influence other variables and reduce the barriers to implementing a circular agricultural economy in the region. A similar study by Dziedzic et al. (2022) underscores the importance of educating and informing the agricultural workforce about the CE model.
Conclusion and Suggestions: The study findings highlighted the necessity of involving a younger educated generation in agriculture through extensive long-term initiatives to achieve sustainable development and effectively implement the CE model in agricultural regions of developing countries like Iran. This transformation requires a shift from traditional and subsistence farming to a modern commercial agricultural framework that addresses the economic and structural inefficiencies of small-scale farming. Such a shift would enable the integration of innovative CE practices such as waste reduction, resource optimization, and enhanced input-output cycles known to be essential for sustainable agricultural systems in the long term.