The main subjects are research development, consultation work and the distribution of knowledge and know-how within the Icelandic forest sector.

Furthermore, the IFS acts as Iceland's representative body for international forest-related cooperation.

Within the Icelandic farm afforestation grants scheme, contracts are made with landowners, afforestation plans are drawn up for each participating farm, seedling production and distribution are coordinated, education and extension services are provided and grants are distributed.

State funding of farm afforestation grants reached a maximum during 2005-2009 but suffered severe cut-backs after the 2008 financial collapse.

In recent years, with ever clearer signs of global warming, carbon sequestration has become one of the most important drivers of new afforestation projects in Iceland.