Dairy Surplus Reduction Act of 1983

Dairy Surplus Reduction Act of 1983 - Amends the Agricultural Act of 1949 to extend the present milk support price of $13.10 per hundredweight through September 30, 1985.

Eliminates the additional April 1983 50-cent milk producer assessment (retains the October 1, 1982 assessment).

Establishes a voluntary incentive program of payments of $10 per hundredweight to dairy farmers who reduce the quantity of milk marketed by between five and 30 percent of 1982 levels.

Requires that one-half of the payments be made within 30 days after a reduction contract is entered and the remaining amount within 30 days after compliance with the contract has been determined. Requires a participant to return the initial payment plus 12 percent interest for contract noncompliance.

Authorizes the Secretary to modify: (1) individual contracts to prevent overall excess reductions; and (2) individual 1982 bases if they were abnormally low as a result of natural or man-made disasters.

Makes contracts assignable.

Subjects a participant to a civil penalty (after a hearing of record) of up to $10,000 for specified contract violations (unauthorized transfer of dairy cattle and milk facilities). Provides for review of such penalty assessment in U.S. district courts.

Terminates such program as of October 1, 1985.