The latter half of the 19th century in Iceland featured harsh weather and natural disasters which led to economic hardship. A series of hard winters, cold summers, pack ice, violent winds, heavy snow and sand storms led to land erosion, crop failure, poor harvests, little fodder for animals and loss of livestock throughout the country. In 1875, an eruption of the volcano Askja covered parts of the North and East with poisonous ash and pumice, adding to the already desperate situation of many farmers.

At the same time, news of the mass movement of emigrants from Europe to North America was reaching Iceland. As was happening in much of Europe, Iceland was experiencing many changes, chief amongst them the lack of opportunity for farmers to acquire and profit from their own farms, and opportunity for employment. People considered seriously the promise of having their own land or gainful employment and thus a more prosperous life in the ‘New World’.