Established 22 January 1946

The company was originally established as a co-operative on 22 January 1946 and is today considered one of the oldest contracting companies in Iceland. It was founded by farmers in five rural districts in what is today the Flói and Skeið area — in effect a merger of the local farming associations under the banner of a single ræktunarsamband.

From this it may be inferred that the co-operative ideal was the main driving force of the association from the outset.

For many years the company was one of the strongest earthworks contractors in its home region and built up a substantial drilling division. The projects the company has taken part in are numerous and large.

The years 2008–2014 were difficult for the company; following the economic collapse in Iceland the situation changed overnight. In 2014 a complete restructuring of operations was concluded. The earthworks division was sold off and now operates under the name Borgarverk. The focus of Ræktunarsamband is on ground drilling. Jarðboranir acquired all shares in Ræktunarsamband Flóa og Skeiða in the first half of 2015.

The company's main place of operation is in Selfoss.

In 2007 a documentary film was made about the company's history.