The Federal Agricultural Improvement and Reform Act of 1996 authorized the Secretary of Agriculture to operate options pilot programs. The Risk Management Agency (RMA) has been authorized by the Secretary to administer the options program for dairy, called the Dairy Options Pilot Program or DOPP. DOPP is the first options program to be launched under the 1996 ACT. Its purpose is to help dairy producers learn how to manage price risk. The program will offer producers first-hand experience in trading options contracts for a period of six to eight months. Options may be used by dairy producers to establish a floor under their milk price.