Resources are limited. Thus, farmers worldwide are trying to use their waste to best extract value that can promote environmentally friendly farming. Recycling dairy waste for organic cultivation seems to be one of the alternative approaches to pursuing environmentally friendly agriculture. This study investigates whether or not dairy waste treatment could improve organic crop production and promote a circular economy. This endeavor examines the credible benefits, obstacles, and consequences of incorporating dairy waste into organic farming practices. Using System Dynamics and case study approaches, including field trials, agricultural evaluation of data, and discussions with stakeholders, the research strategy advocates investigating how dairy waste-derived fertilizers influence soil fertility, crop productivity, and product quality. Interaction with stakeholders helps evaluate the viewpoints of growers, dairy producers, legislators, and consumers regarding adopting dairy waste treatment for organic agricultural growth. This study demonstrates how dairy waste processing can serve as a significant source of biofertilizer for organic farming. The beneficial impact of organic fertilizer derived from farm waste improves the nutritional value of organic crops, crop yield, and soil health. The crop production information collected in the study demonstrates that dairy waste-derived fertilizers are nutrient-dense and could substitute for manufactured/chemical fertilizers economically and environmentally. This study emphasizes the need for creative ideas to improve agricultural sustainability. The present study advances the understanding of sustainable agriculture and offers practical advice to those looking to use greener methods of operation.