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Iceland farm stays - questions - anyone w/ experience?

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I am in the process of getting rooms booked for an upcoming trip in August. Several people recommended using the farm stays. I also booked rooms through booking.com and such on my own. The farm stay people came back to me w/ reservations and the rates seem astronomical. I am trying to get a sense if this is typical.

The rooms I've found (family rooms for 4 people) through booking.com have been around $200 per night, usually including breakfast. These are basic sorts of places, but that is where the budget is for this trip. I have about 2/3 - 3/4 of the trip booked this way.

I just got the information today from the farm stay booking place and the average cost per night is $355 - and all the rooms are listed as doubles w/ extra beds for the children. To me this means a tiny room with two additional cots crammed in some how (my kids are 8 and 12). $355 per night seems really really high - higher than I expected. I am wondering if this is consistent with other's experiences, or what. They want a deposit NLT tomorrow. I'm thinking I am going to pass on all of them and fill in rooms I still need on my own. I can't see paying that much for a double room. I thought farm stays were supposed to be more economical. Unfortunately, the reservation also does not break down the cost per location - so I have no idea if one place in particular is extremely expensive and the others are more reasonable. I've found the email communication to be challenging - e.g. I haven't gotten the information I asked for (e.g what is the location of this booking) and the general tone of the emails back to me is one of annoyance.

I am wondering about other's experience w/ farm stays, how the costs compared, and what was the quality of the places in which you were booked.

Thanks in advance!

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