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Best Farm Stay Hotels in Iceland, Ranked

2026-03-155 min readcheaphotels
Working sheep farm with converted guesthouse in south Iceland Working sheep farm with converted guesthouse in south Iceland

Nine working farms that take paying guests, ranked by how genuine the experience is and whether the beds are actually comfortable.

The real working farms

Efstidalur II near Laugarvatn is the gold standard: a dairy farm with its own ice cream parlour and restaurant serving beef raised on site, plus you can watch the milking through a glass wall. Rooms are modern and warm. Hotel Ranga is not a farm but sits among them; skip it for this list. Vogafjos Farm Resort at Myvatn milks cows twice a day in view of the restaurant and serves the milk with breakfast. Hraunsnef Country Hotel in Borgarfjordur runs sheep alongside guest cottages and does lamb dinners from the same flock.

Fossatun in Borgarfjordur has camping pods and cottages on a working farm with a waterfall on the property. Hestasport Cottages near Varmahlid pairs accommodation with horse riding on Icelandic horses bred on site.

Country hotels that call themselves farm stays but aren’t

Several rural hotels use farm branding without any actual farming happening. If the website talks about the setting more than the animals, it is a country hotel, which is fine but different. Country Hotel Anna and Hotel Fljotshlid are pleasant rural stays without livestock. Fosshotel Nupar sits in farmland without being one.

What a real farm stay gives you: proximity to animals, farm-produced food at meals, and hosts who work the land. What it does not give you: silence, since roosters and dogs start early, or luxury, since most rooms are functional country style. Bring earplugs, expect a shared bathroom in the older properties, and eat everything they serve at breakfast because farm butter and skyr taste completely different from supermarket versions.

Book while you read Median night$165 Cheapest area$110 Hotels tracked4 Find a hotel

Before you book

What people ask before booking Myvatn.

Can I help with the animals?

At Efstidalur and Vogafjos you can watch milking. Actual hands-on farm work is not offered; this is a farm, not a petting zoo, and insurance rules apply.

Are farm stays cheaper than hotels?

Slightly, but not dramatically. Expect 25,000-40,000 ISK a night in summer for a double, roughly 20 percent below equivalent country hotels.

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