After the German occupation of Norway in April 1940, Hundseid was approached during the summer by a representative from Reichskommissariat Norwegen who wanted Hundseid to lead a new organization for farmers which was meant to replace the Norwegian Agrarian Association. Hudseid declined the offer. In the autumn, he was called to a meeting with Nasjonal Samling councillor of state Sverre Riisnæs. In a follow-up meeting, Riisnæs gave Hundseid a declaration written by Quisling which he wanted Hundseid to sign. Hundseid signed a somewhat moderated statement where he declared he would become a member of Nasjonal Samling and be writing newspaper contributions in favour of NS. While Hudseid distanced himself from Nasjonal Samling and fascism after the war, he also had a track record of stark, anti-semitic statements, including claims that jews were "not real Norwegians"