The Agricultural University of Iceland has for many years been responsible for extensive farm operations at Hvanneyri and Hestur in Borgarfjörður. Farming is the foundation for important aspects of teaching and research at the Institute and the cornerstone of Icelandic agricultural science. Emphasis has been placed on animal husbandry and agriculture, but also in recent years in behavioral and environmental scince.
The farmhouse is separate from other activities of the University of Iceland, but a special company, Hvanneyrarbúið ehf., is responsible for the operation of the dairy farm at Hvanneyri. Independent operators work at the sheep farm at Hestur with a special agreement with the Agricultural University. The main objective is to operate the highest quality teaching and research facilities for the university's activities for use in the scientific community, create facilities for students and employees of the University of London and colleagues from the country, both outside and within, for education and research related to agriculture, resources and the environment in a broad sense.