Soil erosion and land use policy in Iceland in relation to sheep grazing and government subsidies

A recent national erosion assessment programme reveals that soil erosion is more active in Iceland than is witnessed in other European countries. Most of the communal grazing areas in the central highlands are not suitable for grazing by sheep because of poor condition. Agricultural subsidies are a substantial proportion of Iceland's national budget and the sheep farming is dependent on subsidies. Recently, a landmark agreement was made between sheep farmers and the government, where part of the production subsidies were tied to "quality management", including sustainable land use. This agreement calls for rapid assessment of all grazing land in Iceland. These challenges have been met by the use of classification of satellite imagery and innovative methods in obtaining farmland boundaries. The subsidy agreement may have more importance for attaining sustainable land use in Iceland than most government initiatives to date. Financial incentives. such as linking subsidies to land condition and improvements, encourage a reduction of grazing pressure on marginal highland areas, but do not lead to exclusion of such grazing practices. We believe that Icelandic rangelands should be divided into two categories: land intended for use (farmland), and land that should be protected from grazing by national law. (C) 2003 Elsevier Science Ltd. All rights reserved.