Agriculture Act (No. 70 of 1998).

This Act sets out a broad legal framework for Icelandic agricultural policy, particularly in relation to state support, farm development, breeding, advisory services and institutional arrangements. Its objectives include improving the general operating conditions for agricultural production and processing, promoting efficiency and competitiveness, ensuring a diverse supply of quality products at fair prices, supporting animal welfare, product safety, environmental protection and sustainable land use, increasing organic production, supporting farmers’ income and development in the sector, encouraging new entrants, and ensuring that state support benefits active farmers.
The Act regulates the role of the Minister and the state in financing agricultural support measures, including through agreements with the Farmers’ Association of Iceland. It provides for annual state contributions to projects such as breeding, development, land improvement, land payments, new entrant support, organic production, conservation of livestock breeds, special projects and advisory services. It also defines who may receive payments, generally limiting them to producers engaged in agriculture on registered farms or horticultural holdings, with relevant VAT registration and eligible economic activity codes.
Substantively, the Act covers land improvements and land payments, breeding projects, livestock records, breeding stations, livestock shows and assessment, export of livestock, conservation of agricultural genetic resources, and advisory services for farmers. It establishes professional councils for different agricultural sectors, provides for guidance and technical assistance to farmers, and authorises the Minister to issue detailed regulations for implementing the Act. In sum, the Act operates as the basic statute for agricultural support, development and institutional governance in Iceland.