Diversifying with agritourism

MÝVATN, Iceland — Just below the Arctic Circle in northern Iceland, Vogafjós Farm Resort has been passed down through generations of the same family since 1890.

Siblings Ólöf Hallgrímsdóttir and Leifur Hallgrímsson grew up on their family’s dairy farm and continue to operate it alongside their spouses, Jón Reynir Sigurjónsson and Gunnhildur Stefánsdóttir. The next generation — Ólöf’s and Jón’s son Skarphéðinn — has joined the Icelandic farming legacy, caring for the herd of dairy cows. The family also owns a restaurant and a 24-room guesthouse.

Hallgrímsdóttir said providing guests with an authentic Icelandic experience, in a uniquely beautiful setting, is part of sharing the heritage of her family’s commitment to the land.

“Our whole family is involved in the daily operations of the farm, the restaurant and the guesthouse,” Hallgrímsdóttir said. “We are committed to preserving our farm’s legacy while sharing it with our visitors.”

Vogafjós Farm Resort, in Mývatn, is home to 40 Icelandic dairy cattle. The 16 milk cows are milked twice daily, year-round, in a 4-cow parlor. The herd averages 4.4% butterfat and 3.6% protein.

Much of the milk produced on the farm is made into cheese for guests of the farm resort. The remaining milk is shipped twice weekly to a cooperative in Akureyri, the closest town, 55 miles west, where it is sold throughout Iceland as pasteurized fluid milk, cheese, butter and skyr —a cultured dairy product similar to very dense, mild yogurt or soft cheese that has been a traditional part of the Icelandic diet for more than 1,000 years.

A flock of 100 sheep resides at Vogafjós Farm Resort, as well. The sheep are kept indoors from December through the end of lambing season in May. In the warm months they graze freely in the mountains. Each autumn, the area farmers gather to bring the sheep back and sort them among the owners.

Winters in northern Iceland are cold and dark, Hallgrímsdóttir said, although in recent years he said winter temperatures have been warmer. During the summer, temperatures range from 50-65 degrees, with little rain because of the shelter of Vatnajökull, Iceland’s largest glacier, located south of the farm.

The farm is located near the eastern shore of Mývatn, a volcanic lake well known for its beautiful scenery and abundant birdlife. The lake is the fourth largest in Iceland, covering 14 square miles.

“The environment has a strong effect on us,” Hallgrímsdóttir said. “The cows must be kept indoors in the cold months and we need to store hay or silage for feed for the whole winter, even until June if we have cold springs.”

The cows have to be kept in at times during the summer because midges — small biting flies that are especially common in the Mývatn region — cause irritation and a drop in production.

The area consists of nearly 50,000 acres of farmland owned by 26 different people. The farm sits almost 1,000 feet above sea level, and is made up of three small farms that once belonged to each of three brothers in the family.

The region has a short growing season, too short to grow corn, so forages are the primary feed fed to cows.

“Our fields are very small because we are surrounded by a lava field,” Hallgrímsdóttir said. “Our hay making must be done far away — more than 12 miles — and all our silages are transferred by trailers.”

Approximately 500 bales of hay are harvested each growing season for winter storage. Hallgrímsdóttir said because of the volcanic activity, the small fields near the home farm are warmed by the geothermal heat and turn green before the fields on other farms.

The dairy industry in Iceland is regulated by production quotas and environmental regulations, Hallgrímsdóttir said. In northern Iceland, the industry is additionally limited because of its remoteness.

Hallgrímsdóttir said the current milk price is 130 Icelandic Króna per liter — the equivalent of $45.77 per hundredweight. In addition, Icelandic dairy farmers are paid a subsidy connected to the amount of quota each farmer owns.

“The dairy industry near me is small,” Hallgrímsdóttir said. “The number of farmers is constantly decreasing. As farmers get older, no one wants to take over because it is a lot of work and not much pay.”

Hallgrímsdóttir said she is concerned the Icelandic government wishes to join the European Union, and the effect that this will have on farmers.

Hallgrímsdóttir said she hopes her family’s farm and tourism enterprise will continue to provide vital jobs for their community.

“The closest community consists of 500-600 people,” Hallgrímsdóttir said. “If it gets to be too few people, it will be difficult to continue with a good society. It is very important for our rural community to create jobs.”

Hallgrímsdóttir and her brother were impacted by those concerns when they took over operation of the family farm in 1982 after the passing of their father.

“We all had another job then because it was impossible to survive on farming alone,” Hallgrímsdóttir said.

The brother and sister invested in farm improvement, building a new barn for their herd in 1998. Seeing a growth of tourism in the area, the family added a small café in 1999, with one employee serving coffee and sweet treats. 

“We couldn’t build a big stable for the cows, so we planned to have the small cafe so we could earn some extra money and possibly just work on the farm,” Hallgrímsdóttir said.

In 2005, the family added lodging to their business model, with 24 guest rooms. The geothermal activity under the farm provides heat, along with a hot tub for guests to enjoy while watching the aurora dance in the sky.

The restaurant was expanded in 2007 to include a fully equipped kitchen. The menu is primarily traditional, local food.

“We think it is important that the young generation is always learning from the old one,” Hallgrímsdóttir said. “That is how we keep our old heritage.”

The family’s agritourism enterprise has grown to employ 20 people in the winter and 40 in the busy summer season.

“Little by little, we are expanding our company,” Hallgrímsdóttir said. “There is never a dead moment. New regulations will require a new barn to be built by 2035.”

Hallgrímsdóttir said the family has plans to continue to increase diversification of the farm to make it possible for her children to carry on the family legacy of farming near the shore of Mývatn.

“We do as much as possible with our hands and our hearts,” Hallgrímsdóttir said. “I hope my children will take over and continue with my lifework. It is a challenge that fewer and fewer workers want to stay in the rural areas.”