Icelandic Farmers Welcome One-Year Extension of Agricultural Agreements

Trausti Hjálmarsson, chairman of the Farmers' Association of Iceland (BÍ), expressed satisfaction with the one-year extension of current agricultural agreements, stating that it provides much-needed short-term certainty for the farming sector. The agreement, which was set to expire at the end of the year, will now remain in effect through 2027.

"I believe we farmers can be quite content with extending the current agreements for another year," Hjálmarsson said. "This gives us time to do proper work with the government to properly improve the working environment and conditions for farmers in the long term."

The extension includes a modification to the payment structure: the annual payments will not decrease by one percent in 2027 as previously planned for the years 2022-2026. This change creates room to allocate 200 million Icelandic krónur towards increased contributions, offering a slight financial boost.

Hjálmarsson emphasized that while the immediate uncertainty regarding farmers' operating conditions has been resolved, the focus now shifts to addressing long-term issues. The agreement aims to provide a stable foundation for future negotiations and improvements to the agricultural sector's overall environment and economic terms.

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I believe we farmers can be quite content with extending the current agreements for another year. This gives us time to do proper work with the government to properly improve the working environment and conditions for farmers in the long term.