The Baugsstadir farm was named after the settler Baugur, who spent his first winter in Iceland there before he built his permanent farm in the Ranga Area. Shortly after the turn of the 19^th century, a creamery was built there. It stayed in operation until 1950, longer than any other such undertaking in the country.

It was preserved in its original form, both the machinery indoors and the purling brook and the water wheel outdoors. During summer, it opens to the public.