Blockchain technology (BCT) can potentially transform agricultural value chains by enhancing transparency, trust, and efficiency. However, adoption among smallholder farmers in developing regions remains limited. This study investigates the factors influencing BCT adoption and extent of use among barley farmers in Uganda’s Sebei subregion, where BCT was introduced through the BanQu platform to improve the barley value chain. Using a quantitative cross‐sectional survey design, data were collected from 490 respondents (BCT adopters and nonadopters) through a multistage sampling process and analyzed using a double hurdle model (DHM) in STATA (version 17), with extent of use measured as the number of seasons of BCT utilization. The findings reveal that BCT adoption and extent of use are jointly influenced, both positively and negatively, by socioeconomic, institutional, and infrastructural factors. Key socioeconomic factors related to human, financial, and farm resources; institutional factors included training, extension, farmer groups, and market access, while infrastructural factors comprised system compatibility and network connectivity. The study highlights the need for policy actions to reduce financial barriers and strengthen land tenure security, alongside strengthened training and extension systems, improved digital and market infrastructure, and community‐based approaches to promote BCT adoption and sustained use.