Addressing the critical challenges of resource inefficiency and environmental impact in the agrifood sector, this study explores the integration of Internet of Things (IoT) technologies with IOTA’s Tangle, a Distributed Ledger Technology (DLT). This integration aims to enhance sustainable agricultural practices, using rice cultivation as a case study of high relevance and reapplicability given its importance in the food chain and the high irrigation requirement of its cultivation. The approach employs sensor-based intelligent irrigation systems to optimize water efficiency. These systems enable real-time monitoring of agricultural parameters through IoT sensors. Data management is facilitated by IOTA’s Tangle, providing secure and efficient data handling, and integrated with MongoDB, a Database Management System (DBMS), for effective data storage and retrieval. The collaboration between IoT and IOTA led to significant reductions in resource consumption. Implementing sustainable agricultural practices resulted in a 50% reduction in water usage, 25% decrease in nitrogen consumption, and a 50% to 70% reduction in methane emissions. Additionally, the system contributed to lower electricity consumption for irrigation pumps and generated comprehensive historical water depth records, aiding future resource management decisions. This study concludes that the integration of IoT with IOTA’s Tangle presents a highly promising solution for advancing sustainable agriculture. This approach significantly contributes to environmental conservation and food security. Furthermore, it establishes that DLTs like IOTA are not only viable but also effective for real-time monitoring and implementation of sustainable agricultural practices.