Soon after Iceland was settled, Skaftafell became a major farm, and area meetings (þing) were held on its land. The disastrous Öræfajökull eruption of 1362 wiped out the entire local community and the district has been named Öræfi, the "wasteland", ever since. Skaftafell and many other farms were soon re-established, but at that time the climate was also starting to cool down, making it increasingly difficult to live from farming. The frequent Grímsvötn eruptions triggered jökulhlaups which flooded over hay fields, covering them with ash and sand. In 1988, traditional farming was discontinued at Skaftafell.
In earlier times, however, the farmers had supplemented sheep farming by trips to the coast, where they hunted seals and collected eggs. Stranded ships provided excellent material for making various items, and some of the Skaftafell farmers became well known for their crafting talents.
In earlier centuries, the farmstead stood just below the slopes, where some of the ruins still remain visible at Gömlutún. Skeiðará river began flowing closer to the farm and destroyed the fields, until in the early 19th century when the farm was moved onto the mountain slopes and divided into three households. One of them, Sel, was abandoned in 1946 but has since been restored by the National Museum and made accessible for visitors
