Iron‐based magnetic nanoparticles (MNPs) have been studied extensively for the past few decades. They have been applied in various applications, particularly in the biomedical sector. Due to their excellent physical and chemical properties, they have also been used widely in the agricultural sector. MNPs can be synthesized inexpensively and applied in large scale agricultural activities. This paper highlights the applications of iron‐based MNPs in the agricultural sector mainly as antimicrobial agents, plant growth promoters, site‐targeted delivery agents, nanosensors, detection and remediation for pesticide residue. Furthermore, the toxicity and transport of iron‐based MNPs in the soil‐plant system are also elucidated. These aspects have to be well‐understood before MNPs can be fully implemented effectively this pin the agricultural sector. Lastly, a hybrid nanomaterial, which is consisted of iron and magnesium oxide (MgO) nanoparticles (NPs), is proposed. This hybrid nanomaterial is expected to overcome the shortcomings of iron‐based MNPs.