This spot was marked on our map as a sightseeing spot but we had no clue what it was. Googling it while on the road (internet connection in that area is pretty good with a local data card) we discovered that it's sort of a museum that consists of various planes, the piece de resistance being an old Douglas C-117D from the US Navy. Locals told us it was a gift from the former US base in Keflavik.
The previous farmer of the farm Hnjotur, Egill Olafsson, now deceased, spent a large portion of his life collecting various items and articles of local and national historical importance for his museum.
For us it was especially cool to see this place as my husband served 11 years in the US Navy and was actually stationed in Iceland for 1.5 years. Very unexpected thing to find in the Westfjord :).