Dairy Production Act of 1981

Dairy Production Act of 1981 - Amends the Agricultural Act of 1949 to establish a milk price support for the period from enactment of this Act to September 30, 1985, of 75-90 percent of net estimated Government purchases. States that such estimates shall be based on the most recent six-month period adjusted to an annual level (using the previous ten-year period) and adjusted to reflect such factors as feed and cow prices. States that such support price shall not be lower than the existing support price. Permits a redetermination of such support price if imported dairy products are increased under specified conditions during the marketing year.

Requires the Secretary of Agriculture to notify in writing the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture 30 days prior to any new support level.

Revises the semiannual milk adjustment provisions to: (1) extend such provisions through September 30, 1985; (2) make such adjustments discretionary (a) unless Government purchases fall below a specified annual rate or (b) such adjustments are necessary to prevent a support price at less than 75 percent of parity; and (3) require the Secretary to notify such Committees in writing of any such adjustment.

Extends the dairy indemnity program (chemical or radiation contamination) and the availability of price-supported dairy products for the military and veterans' hospitals through 1985.

Directs the President to proclaim a quota on the importation of milk protein products used in food or animal feed. Prohibits the importation of dairy products (as defined by this Act) for food or animal feed without the Secretary's authorization. Prohibits such an authorization if the resulting importation of dairy products exceeds certain limits under the Agricultural Adjustment Act of 1933.

Eliminates the dairy base plan separate adjustment (and related provisions) for milk handlers.