Agricultural Policy Monitoring and Evaluation 2026

13. Iceland

Main findings

Support to agriculture

Support to farmers in Iceland is the highest across all countries covered in this report. The Producer Support Estimate (PSE) was more than three times the OECD average in 2023‑25, at 52% of gross farm receipts. Market price support measures account for 53% of producer support, driven principally by tariffs that maintain high domestic prices relative to world prices and cause a transfer from consumers to farmers. Payments coupled with production factors complement market price support. Output payments for milk producers and largely decoupled payments to sheep meat producers represent most of the remaining support to farmers. About 75% of farm support is potentially most-distorting to production and trade.

Effective prices received by farmers have declined over time on average as the Producer Nominal Protection Coefficient (NPC) declined but remain very high at 59% above border reference levels in 2023‑25. Market price support is especially high for poultry and egg products, where it accounts for 66% and 61% of commodity gross farm receipts, respectively. In the case of wool output payments account for 79% of Single Commodity Transfers (SCT). Overall, SCT represent 96% of total PSE.

Expenditures for general services (General Service Support Estimate, GSSE) represent 3% of total support to agriculture (Total Support Estimate, TSE), much lower than the OECD average of 15%. These expenditures decreased from 7% of the value of agricultural production in 2000-02 to 2% in 2023‑25. Inspection and control represent 78% of GSSE and the rest is split between agricultural knowledge and innovation system and public stockholding.

TSE as a share of Gross Domestic Product (GDP) declined from 1.7% in 2000‑02 to 0.8% in 2023‑25. This largely reflects the declining share of agriculture in the overall economy.

Key policy changes in 2025-26

In 2025‑2026, Iceland advanced reforms of agricultural support system, guided by a newly formed coalition government and the establishment of the Ministry of Industries. The government’s agenda prioritises innovation, generational renewal, sustainable production, and strengthened food security.

Food security has been a central focus, with new assessments of emergency supplies and the launch of a national food security dashboard. In response to crops and livestock losses related to severe weather conditions in 2024, ISK 701 million (USD 5.5 million) in targeted relief were provided to farmers and initiating a review of natural hazard funding arrangements.

Efforts to expand organic farming continued, including new investment support and value chain strengthening measures. Cereal production has received increased attention, with long term funding allocated to research, breeding, and sector infrastructure. Production support for dried grain was introduced in 2025.

Climate policy actions focus on reducing emissions, improving energy efficiency, and supporting climate-smart agricultural practices. In 2025, the Minister of Environment, Energy and Climate identified five priority actions based on cost-benefit analysis and broader assessments, with tangible results expected by 2030. Among these is investment support to farmers through the Climate and Energy Fund. In this context, the Minister of Environment, Energy and Climate, together with the Minister of Industries, will allocate ISK 80 million to support investments in equipment that reduces greenhouse gas emissions associated with fertiliser use in agriculture. Similarly, the Minister of Environment, Energy and Climate has allocated ISK 236 million for 2025‑26 to provide dedicated investment grants to horticulture producers for the purchase of energy-efficient LED lighting systems for cultivation, replacing significantly more energy-intensive technologies. According to the government’s new climate change adaptation plan, a vulnerability and risk assessment for agriculture sector will be conducted to support the formulation, selection, and prioritisation of adaptation measures.

The Ministry has also concluded an agreement with the Icelandic Agricultural Advisory Centre for the period 2025‑26, aimed at strengthening advisory services for farmers. The agreement includes maintaining farm-level operational analyses, improving statistical data collection, and delivering more comprehensive advisory services that integrate agricultural and climate-related advice.

Iceland also strengthened agricultural research and advisory services through new agreements with the Agricultural University of Iceland for continued research, development, and specialised advisory services for the period 2025‑2027. Progress on eradicating sheep scrapie has accelerated due to the identification of resistant genotypes, enabling more effective long-term disease management

Assessment and recommendations

• Progressively decouple producer support from production and shift it towards less trade-distorting and more environmentally sustainable forms of assistance. Progress in agricultural policy reform has been limited, and support to farmers in Iceland remains well above the OECD average, with continued reliance on market price support and output-based payments, which are production- and trade-distorting. This contributes to elevated agricultural and food prices and may exacerbate pressures on the environment. Re-instrumenting support away from coupled measures towards decoupled payments and expanding targeted agri-environmental schemes, would support the sector’s objective of achieving carbon neutrality by 2040 and enhance resilience to climate change by allowing farmers greater flexibility to adjust production in response to evolving climatic conditions.

• Align agricultural support with climate objectives by reducing production-linked support for ruminant sectors and reinforcing mitigation incentives., Current support measures – especially market price support and output payments for ruminant products such as milk and wool – risk counteracting the mitigation efforts and weakening policy effectiveness. Greater policy coherence would enhance efforts to reduce emissions and support the goal of carbon-neutral agriculture by 2040.

• As a complement and to sustain strong productivity growth strengthen targeted mitigation policies for the livestock sector – such as incentives for low-emission practices, improved herd management, and innovation in feed and breeding. This will help progress toward climate objectives without undermining sectoral performance.

• Increase investment in general services, particularly agricultural innovation systems, by reallocating resources away from producer support. Expenditures for general services are only 3.5% of total support estimate (TSE). A large share of support remains directed towards producers, limiting the resources available for broader sectoral improvements. Shifting budget expenditure from producer support towards Iceland’s agricultural innovation systems and other general services could strengthen the sector’s capacity to improve environmentally sustainable productivity growth and contribute to climate change mitigation and adaptation.

• Develop a more comprehensive agricultural risk management framework. Current policies may limit farmers’ ability to respond to shocks, including market volatility, extreme weather events, and production input disruptions. Existing support is not always well aligned with risk management needs. Expanding tools such as insurance schemes, income stabilisation instruments, and better information systems would improve resilience. This would enhance the sector’s capacity to adapt to an increasingly uncertain environment.

Key indicators on agricultural support

Table 13.1. Iceland: Estimates of support to agriculture

Million USD

.	1986-88	2000-02	2023-25	2023	2024	2025p
Total value of production (at farm gate)	236	150	367	327	360	412
of which: share of MPS commodities (%)	80.32	82.11	88.79	87.82	88.93	89.61
Total value of consumption (at farm gate)	205	137	337	304	332	376
Producer Support Estimate (PSE)	193	139	250	239	239	272
Support based on commodity output	180	113	184	168	176	207
Market price support¹	179	72	132	118	126	152
Positive market price support	179	72	132	118	126	152
Negative market price support	0	0	0	0	0	0
Payments based on output	2	40	52	51	50	55
Payments based on input use	13	4	20	25	18	18
Based on variable input use	3	0	4	4	3	4
with input constraints	0	0	0	0	0	0
Based on fixed capital formation	6	2	11	15	9	9
with input constraints	0	0	0	0	0	0
Based on on-farm services	4	2	6	6	6	5
with input constraints	0	0	0	0	0	0
Payments based on current A/An/R/I, production required	-1	-3	13	12	13	15
Based on Receipts / Income	-1	-3	0	0	0	0
Based on Area planted / Animal numbers	0	0	13	12	13	15
With input constraints	0	0	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	20	33	34	31	32
Payments based on non-current A/An/R/I, production not required	1	5	0	0	0	0
With variable payment rates	0	0	0	0	0	0
with commodity exceptions	0	0	0	0	0	0
With fixed payment rates	1	5	0	0	0	0
with commodity exceptions	1	5	0	0	0	0
Payments based on non-commodity criteria	0	0	-0	0	0	0
Based on long-term resource retirement	0	0	0	0	0	0
Based on a specific non-commodity output	0	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0	0
Miscellaneous payments	0	0	0	0	0	0
Percentage PSE (%)	77.19	63.98	51.53	53.23	50.46	51.02
Producer NPC (coeff.)	4.16	2.44	1.78	1.80	1.75	1.79
Producer NAC (coeff.)	4.38	2.78	2.06	2.14	2.02	2.04
General Services Support Estimate (GSSE)	18	11	9	9	8	10
Agricultural knowledge and innovation system	5	5	1	1	1	1
Inspection and control	1	2	7	6	5	8
Development and maintenance of infrastructure	2	1	0	0	0	0
Marketing and promotion	1	1	0	1	0	0
Cost of public stockholding	9	2	1	1	1	1
Miscellaneous	0	0	0	0	0	0
Percentage GSSE (% of TSE)	6.94	7.39	3.46	3.64	3.12	3.62
Consumer Support Estimate (CSE)	-112	-65	-124	-112	-120	-141
Transfers to producers from consumers	-157	-66	-125	-112	-120	-142
Other transfers from consumers	-1	-2	-0	-0	0	0
Transfers to consumers from taxpayers	46	3	1	1	1	1
Excess feed cost	0	0	0	0	0	0
Percentage CSE (%)	-70.44	-48.30	-36.95	-36.90	-36.16	-37.75
Consumer NPC (coeff.)	4.38	1.98	1.59	1.59	1.57	1.61
Consumer NAC (coeff.)	3.38	1.93	1.59	1.58	1.57	1.61
Total Support Estimate (TSE)	257	153	259	249	247	283
Transfers from consumers	158	68	125	113	120	142
Transfers from taxpayers	100	88	134	136	127	140
Budget revenues	-1	-2	-0	-0	0	0
Percentage TSE (% of GDP)	4.77	1.70	0.76	0.78	0.74	0.74
Total Budgetary Support Estimate (TBSE)	78	81	128	131	121	131
Percentage TBSE (% of GDP)	1.47	0.90	0.37	0.41	0.36	0.34
GDP deflator (1986-88 = 100)	100	264	832	784	832	879
Exchange rate (national currency per USD)	40.93	89.23	134.78	137.94	137.96	128.44

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient.

A/An/R/I: Area planted/Animal numbers/Receipts/Income.

1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Iceland are: milk, beef and veal, sheep meat, wool, pig meat, poultry and eggs.

Source: OECD (2026), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Iceland’s principal agricultural policy objective is to maintain and strengthen a diverse agricultural sector to the extent that physical and marketing conditions allow. Key policy goals include:

• Meeting domestic demand where realistically possible

• Maintaining sustainable production of high-quality, healthy products

• Improving efficiency and competitiveness

• Improving farmers’ incomes

• Fostering innovation and the creation of job opportunities

• Sustaining livelihoods in rural areas.

Policies centre around price support and direct payments. Price support is provided for all livestock products and some horticultural products. Direct payments are provided to cattle (mainly dairy) and sheep producers, and on a smaller scale, to certain greenhouse producers.

The support system for agriculture is based on regular negotiations with the Farmers’ Association concerning the general framework for support and production control in the cattle, sheep, and horticultural sectors. There is also an agreement on so-called horizontal support, such as advisory services, breeding, animal welfare, environmental protection, sustainable land management, organic farming, and land cultivation. The current agreements cover 2017-26, with reviews undertaken in 2019 and 2023. The 2023 revisions focused on issues related to food security, environment, and climate change.

For dairy, direct payments depend on the size of a producer’s quota and the current number of animals. Headage payments are provided for up to 180 dairy cows and 260 beef cows per farm, with full payment for each of the first 50 dairy cows and 200 beef cows, then at a declining rate for each additional cow. A national dairy production quota is divided among producers based on their annual quotas for the preceding year. Annual dairy quotas also determine entitlements for direct payments. Production in excess of quotas is permitted, provided all such production is for export. Wholesale prices are regulated for approximately half of all dairy products based on the volume of raw milk required. A government-chaired committee representing both the Farmers’ Association and the labour union (acting on behalf of consumers) determines the guaranteed minimum prices for milk delivered within production quotas on an annual basis. Trade in support entitlements (basic payments to all active dairy and cattle farmers) between entitlement holders is allowed with quantity limitations and takes place in a market operated by the government. Dairy producers also benefit from support for breeding, land cultivation and development programmes.

For sheep, direct payments are connected to historical production. However, receiving a full payment requires keeping a minimum number of winter-fed sheep on the farm. Additional payments to sheep farmers relate to a quality-control scheme for lamb meat based on animal welfare, product quality, traceability and sustainability criteria. Premium payments are provided at the wholesale level for purchasers of wool, and to farmers to co-operate in increasing added value for sheep products.

Imports of meat, dairy products, and some vegetables that compete with domestic production are subject to tariffs, often compound duties with an ad valorem component of 30% and a specific duty that varies from ISK 5/kg (USD 0.04/kg) to ISK 1 462/kg (USD 2/kg). The average applied most-favoured nation (MFN) tariff (expressed as an ad valorem equivalent) on agricultural imports in 2023 was 23.5%, significantly above the 0.1% faced by non-agricultural products (WTO, 2024[1]). Certain sectors face higher MFN average rates, such as live animals and meat (67.3%) and dairy (72.7%). However, products originating in partner countries of the European Economic Area (EEA) or in one of the 41 countries with which Iceland has free trade agreements may be subject to lower tariffs. Iceland also applies tariff rate quotas (TRQs) on a number of agricultural products (WTO, 2024[1]).

Iceland is a member of the European Economic Area (EEA) and of the European Free Trade Association (EFTA). While the EEA Agreement does not apply to most trade in agricultural goods, it opens trade in several processed agricultural products and encourages bilateral agreements on primary commodities.

As a member of EFTA, Iceland is also party to Free Trade Agreements (FTAs), including with countries in Southeast Europe, North Africa and the Middle East, Latin America, and Asia, as well as with the South African Customs Union. In addition, Iceland has bilateral FTAs with the Faroe Islands, Greenland, and the People’s Republic of China.

Since 2010, EFTA has increasingly integrated environmental and social sustainability considerations into its trade agreements, including commitments on labour rights, climate change mitigation, sustainable agriculture, biodiversity, and responsible business conduct. These agreements require partners to engage in dialogue and report on sustainable agricultural practices and food systems. This approach has been complemented by analytical tools such as the first Sustainable Impact Assessment published in 2024 in the context of the EFTA–Thailand agreement, which identified potential sustainability benefits alongside environmental risks – particularly related to agricultural trade – requiring continued monitoring. In parallel, specific provisions have been implemented in agreements such as the EFTA–Indonesia RTA, under which Iceland grants preferential tariffs for sustainably produced palm oil, contingent on compliance with environmental standards aimed at preventing deforestation, protecting ecosystems, and reducing pollution.

Recent policy developments

Domestic policy developments in 2025-26

The agenda of the new government that was formed in December 2024 includes several agricultural priorities, such as promoting innovation, facilitating recruitment and generational transition, and reducing horticultural energy costs. The Farm Properties Act is also to be amended to ensure the productive use of agricultural land.

Responsibilities previously held under the Ministry of Food – fisheries, agriculture, aquaculture, food, and food safety – are now incorporated into the new Ministry of Industries, which also covers responsibilities regarding trade, consumer affairs, tourism, and industry, transferred from other ministries. Forestry and land reclamation matters now fall under the Ministry of Environment, Energy, and Climate.

A comprehensive dashboard on Iceland’s food security was published in 2025. Food security is addressed broadly, recognising that effective co-operation between government, industry, and society is essential for long‑term resilience. The dashboard complements other efforts to strengthen understanding and oversight of factors influencing food security, including several government reports.

In response to substantial crops and livestock losses related to severe weather conditions in summer 2024, in 2025, targeted one-time relief measures totaling ISK 701 million (USD 5.5 million) were given to approximately 400 affected farmers. Payments were provided for:

• compensation for crop and livestock losses (Ministry of Industries)

• compensation for hay and crop damage (Agricultural Relief Fund).

In 2025, the Ministry provided investment support for organic production equipment for the first time and presented awards for achievements in organic agriculture. This continues the implementation of the 2024 Organic Agriculture Action Plan, which includes 14 actions to strengthen demand, support conversion, and reinforce the organic value chain, aiming to promote long-term growth in organic agriculture.

In 2025, production support for dried grain (primarily barley, but also wheat and oats) was distributed for the first time. Funding for 2025 and 2026 is ISK 378 million (USD 2.9 million) per year.

Approximately ISK 2 billion (USD 15.6 million) was allocated for 2024-28 to support research, breeding, and infrastructure to strengthen domestic cereal production. A higher priority on cereal production and food security is motivated by supply chain disruptions from COVID‑19, Russia’s war of aggression against Ukraine, and other market disturbances.

In the context of Iceland’s ambition to make the agricultural sector carbon neutral by 2040, targeted investment support is provided in 2025-26 through the Climate and Energy Fund:

• ISK 80 million (USD 0.6 million) is allocated for equipment that reduces emissions from fertiliser use.

• ISK 236 million (USD 1.8 million) is allocated for horticultural investments in energy‑efficient LED lighting to replace high‑energy lighting technologies.

The government published its first climate adaptation plan, which includes a vulnerability and risk assessment for agriculture will be conducted to support the formulation, selection, and prioritisation of adaptation measures. The Climate Friendly Agriculture project continued through 2025 under an extended agreement in which increased emphasis is placed on disseminating knowledge and experience generated by the project to a broader group of farmers. Efforts have also been strengthened to enhance external communication and to ensure that educational materials are widely accessible to all farmers.

The Ministry signed a 2025-27 agreement with the Agricultural University of Iceland to support research, development, and specialised advisory services focused on agriculture and food production. Another agreement with the Icelandic Agricultural Advisory Center (2025-26) aims to strengthen advisory services, improve statistical data collection, and provide comprehensive guidance integrating both agricultural and climate-related advice.

The National Plan for the Eradication of Sheep Scrapie, first released in July 2024, is reviewed annually. Implementation is progressing well, with breeding for disease resistance exceeding expectations. Goals include: (i) eradicating scrapie within 20 years, (ii) reducing occurrence probability to negligible levels by 2032, and (iii) achieving low probability by 2028. The discovery of resistant genotypes in 2022 significantly transformed eradication strategies.

Policy context

Iceland is a small, sparsely populated country with a GDP per capita above the OECD average. Agriculture contributes about 4% both of GDP and of employment. Conditions for agriculture in Iceland are limited by the country’s geographical conditions. The growing season is short – around four months – yields are low, and production and transport costs are high. Approximately one-fifth of the total land area of Iceland is agricultural land, mostly suitable for fodder production and livestock raising. Only around 8% of agricultural land area is arable.

Livestock-rearing is the main farm activity, with milk and sheep meat being the most important products. Livestock production is mostly grassland-based, and most farm animals are native breeds. The main crops are hay, cereals for animal feed and vegetables – the latter are cultivated primarily in greenhouses heated with geothermal energy.

Key economic and agricultural statistics

In 2024 Iceland’s real GDP growth was 1.08%, the unemployment rate was 3.9%, and consumer price inflation was about 4.1%. The economy is projected to grow by 1.6% in 2026 and 3.6% in 2027, the unemployment rate is expected to be around 4% and consumer price inflation 3.3% in 2026 and is projected to approach the 2.5% target by the end of 2027 (OECD, 2025[2]).

Table 13.2. Iceland: Contextual indicators

	Iceland		International comparison
	2000*	2024*	2000*	2024*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	8	32	0.02%	0.02%
Population (million)	0.3	0.4	0.01%	0.01%
Land area (thousand km2)	100	101	0.1%	0.1%
Agricultural area (AA) (thousand ha)	1 894	1 591	0.1%	0.1%
			All countries1
Population density (inhabitants/km2)	3	4	52	64
GDP per capita (USD in PPPs)	30 168	83 631	9 508	31 740
Trade as % of GDP	24.5	25.2	12.3	15.0
Agriculture in the economy			All countries1
Agriculture in GDP (%)	7.9	4.0	3.0	3.6
Agriculture share in employment (%)	8.3	3.7	-	-
Agro-food exports (% of total exports)	7.9	5.5	6.4	8.3
Agro-food imports (% of total imports)	7.3	10.6	6.1	7.5
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	13.1	11.1	62.1	60.4
Livestock in total agricultural production (%)	86.9	88.9	37.9	39.6
Share of arable land in AA (%)	7.1	7.7	33.0	34.0

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

Iceland’s prosperity has been built on the sustainable management of its abundant natural resources, including the comprehensive fisheries management system based on individual transferable quotas, renewable energy (geothermal and hydro) and carbon sequestration opportunities (afforestation, revegetation).

The main agricultural exports are pure-bred horses for breeding, sheep meat products and fur skins. The range of Iceland’s agricultural products is limited and meets approximately 50% of total domestic food requirements. Consequently, Iceland is a net importer of agricultural products (excluding fishery goods). Imports are more diversified than exports and have increased steadily in recent years.

Output growth in agriculture (8.6%) has clearly outpaced the global average over the 2014‑23 period, which has been driven by commensurately robust growth in total factor productivity (TFP) of about 10% per year – which was also much higher than the global average TFP growth (0.8%). This is mostly related to a significant output growth in aquaculture and much less so in crop and livestock output. At the same time intermediate input growth has decreased.

A harsh climate, lack of suitable land, small average farm size, and the narrow genetic base for traditional livestock present significant constraints to the sector. Due to its relatively low livestock densities, Iceland’s nutrient balances show a comparatively small surplus of both nitrogen and phosphorus. The share of agriculture sector of the total energy use has fallen over time. GHG emissions from agriculture have decreased during the past two decades but agriculture continues to represent a significant share in the country’s total GHG emissions – well above the OECD average – mainly due to the importance of the ruminant livestock sector. Emissions of CH₄ emissions from enteric fermentation and manure management, and N₂O emissions from manure management and fertilisers have historically accounted for over 99% of the total emissions from agriculture, with less than 1% arising from CO₂.

Table 13.3. Iceland: Productivity and environmental indicators

	Iceland		International comparison
	1991-2000	2014-23	1991-2000	2014-23
			World
TFP annual growth rate (%)	-0.3%	9.8%	1.8%	0.8%
			OECD average
Environmental indicators	2000*	2024*	2000*	2024*
Nitrogen balance, kg/ha	8.0	6.0	32.3	29.0
Phosphorus balance, kg/ha	1.8	0.7	3.3	2.3
Agriculture share of total energy use (%)	1.9	1.5	1.7	2.0
Agriculture share of GHG emissions (%)	17.4	14.9	8.7	10.3
Share of irrigated land in AA (%)	..	..	-	-
Share of agriculture in water abstractions (%)	42.4	..	46.1	47.7
Water stress indicator	0.1	..	..	..

Note: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

Iceland’s agricultural policy has focused on food security, safety and quality; strengthening rural activity; environmental sustainability; and maintaining farm income.

Iceland supports agriculture heavily and reforms over time have been relatively limited. Support consists mainly of price support sustained with border measures and quotas. Dairy producers receive payments based on output. In 1996, support to sheep meat producers changed from price support to direct payments based on historic entitlements. A regional scheme for sheep farmers implemented in 2008 provides additional direct payments based on historic entitlements. Individual non-transferrable quotas for milk producers were introduced in 1980 and went through a number of reforms. In 1992, the current system of freely transferable quotas was introduced, and production-based payments were linked to the quota, paid directly to the farmer.

Since the mid-1990s, tariffs on agricultural products were reduced. However, tariffs on several agriculture product groups, particularly meat, dairy and flowers, remain high and complicated. Many compound duties with both ad valorem and specific duties apply. Export subsidies for agricultural products have not been provided since the early 1990s.

Table 13.4. Iceland: Agricultural policy trends

Period	Framework	Changes in agricultural policies
Prior to mid-1990s	Closed economy	Minimum prices Agricultural tariffs and non-tariff measures Consumer subsidies
Mid-1990s-2016	Gradual reforms to open market	EFTA, EEA Phase out of administered prices (except milk) Decoupled payments introduced to substitute price support measures Act Production, Pricing and Sale of Agricultural Products No. 99/1993 Act on Agriculture No. 70/1998
2017-2022	Continuation of gradual reforms	Revisions of agreements for sheep and cattle farmers Several FTAs signed EEA agreement enhanced Reduction of agricultural tariffs
2024	New comprehensive agricultural policy and new food policy	Implementation of the first five-year action plan of Iceland’s new agricultural policy (passed by parliament in 2023) started in 2024. The plan contains 28 actions linked to the policy’s ten main issues: food security; adaptation and mitigation to climate change; biodiversity; land use and land preservation; circular economy; international market issues; consumers; innovation and technology; education and R&D; and the agricultural support system. New food policy takes all major aspects of food production in Iceland into consideration, including fisheries, agriculture, and aquaculture. The focus is on sustainability and the circular economy of food production, food security and safety, R&D, consumers, and society. A five-year action plan has been implemented for the food policy in 2024 and contain five actions.

References

[2] OECD (2025), OECD Economic Outlook, Volume 2025 Issue 2: Resilient Growth but with Increasing Fragilities, OECD Publishing, Paris,, https://doi.org/10.1787/9f653ca1-en.

[1] WTO (2024), Trade Policy Review of Iceland (WT/TPR/S/454/Rev.1).