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Hallormstaður is a former parsonery and the Hallormstaðarskógur is the largest forest in Iceland.

The Forest Department was founded in Hallormstaður in 1903, at the same time experiments with imported tree species started. In 1938 the first larch grove was planted and demonstrated that timber could be grown in Iceland. The Hallormstaður arboretum is unique in Iceland, comprising a collection of around 70 tree species.

In fact, the whole woods are a huge, pleasant area, and in late summer one can also find and pick large quantities of berries and mushrooms.