The party was established in 1913 by MPs from the
Union Party, which was formed in 1912 as a joint group of the Home Rule Party and the moderate majority in the
Independence Party. The party suffered a split in 1916 when some members left to form the
Independent Farmers, but there were no MPs among them. In the
August 1916 elections to the six previously appointed seats in the upper house of the
Althing, the party finished fourth with 7.5%. However, by the
October elections to both houses, it finished third in the popular vote, winning four seats in the lower house and one in the upper house. Following the elections it merged with the
Independent Farmers to form the
Progressive Party. == The second Farmers' Party ==