Federal Land Development Authority (FELDA) was established on July 1, 1956 when the Land Development Act (1956) came into force. The initial capital of RM10 million, and the first settlement of 16.2 square kilometers of rubber trees in Ayer Lanas opened in 1957. In 1958, five similar schemes opened. It is administered by a Board responsible to the Deputy Prime Minister under the Prime Minister. FELDA's role is to develop a new land to make farms productive through effective agricultural management among the settlers as well as encourage the growth of a progressive and disciplined society. In the 1960s and 1970s, government policy began to emphasize crop diversification to avoid large price drop. In 1961, the settlement of the inaugural Felda oil palm is open, with 3.75 km² of land. By 2000, a total of 6,855.2 km ² of land under Felda plans palm focused.