Agricultural University challenges 200 million króna funding cut

Iceland’s Agricultural University is challenging its planned 2027 funding, saying a 200 million króna gap between the amount calculated under the university funding model and the proposed operating grant must be corrected. The university outlined its objections in a submission to parliament’s budget committee, mbl.is reported.

The university’s funding under the model is calculated at 1,377.2 million krónur for 2027, but its proposed operating grant is 1,177.2 million krónur. The university says the gap could constrain operations, teaching and research.

The ministry has attributed the funding allocation to a change in how appropriations are distributed because of construction of the Jarðræktarmiðstöð, an agricultural centre at Hvanneyri. The university argues that construction funding should not reduce operating funds intended for teaching, research and other work.

The university also criticised what it called a lack of detailed calculations and information about the basis for the proposed funding. It says an earlier budget forecast letter from the ministry was incorrect and that it has not received sufficient documents to verify the figures, despite asking for them.

Rector Ragnheiður Inga Þórarinsdóttir has asked for the calculations and supporting documents, and for the ministry to explain how the funds are allocated. The university has also requested a meeting with the budget committee and wants the issue resolved before the budget is passed.

The university is also concerned about a reduction in funding for its societal role. That grant is projected at 637.9 million krónur in 2027, down from 752 million in 2026, before wage and price adjustments. The decrease is 114.1 million krónur.

The university says it teaches and conducts research in agriculture, food production and sustainable land use. It also points to its participation in large international research projects and income from European collaboration funds, arguing that such achievements should be reflected in its funding. It says funding decisions for universities should be transparent and predictable.