China is faced with the contemporaneous needs to improve resource-use efficiency, raise production and enhance environmental stewardship of status quo agrifood production systems. Dual purpose ratoon rice cropping systems comprise a promising innovation for addressing such challenges through production of forage and grain on the same land parcel. Here, we conducted life cycle assessments of forage-grain ratoon rice (FG-RR), contrasting sustainability indicators associated with FG-RR against those of traditional ratoon rice (productivity, environmental impact and economics) across four provinces in central China. Compared with conventional systems, we show that FG-RR systems had superior energy output (+37%) and energy use efficiency (+37%), but also lower global warming potential (−17%) and eutrophication potential (−13%). Such benefits were attributed to lower methane emissions and ammonia volatilization, together with enhanced nitrogen fertilizer management. We found that FG-RR systems had significantly higher productivity, with yields being 6%–152% greater than traditional production systems, particularly in the climatically challenged areas of Xinyang and Chizhou. We show that biophysical benefits translated to economic dividends, particularly in Chizhou, where net profits were as high as $716 ha−1. We conclude that FG-RR present a sustainable alternative to traditional rice farming methods, with substantial benefits in terms of production efficiency, environmental sustainability, and economic prosperity. We opine that adoption of FG-RR systems helps address challenges associated with suboptimal productivity, particularly in regions prone to environmental degradation and climatic challenges.