I'm icelandic, and our country is nowhere near suitable for intensive growing of crops. We depend a lot on sheep, cattle and fish to eat and nothing that you say changes that fact.
Why does it need to be suitable for intensive growing of crops? “You” depend on animal agriculture as in you personally, or your country in general? Is any of this stopping you from being vegan? Are vegan foods too expensive there for you to afford it? If no, why are you telling me this? If yes, you can still go vegan in the sense that you do the best you can in the situation you are in, and maybe join your official vegan and vegetarian society and help them in their efforts to make being vegan easier in Iceland.