Milk Producers Prompt Payment Act of 1985

Milk Producers Prompt Payment Act of 1985 - Provides that all milk purchased from a U.S. producer by a handler in a cash sale, and all inventories and proceeds and related products, shall be held by the handler in trust for the producer until the producer receives full payment. Exempts handlers whose total annual milk purchases do not exceed $500,000.

Requires a handler to pay the full cash price to the producer within one day of receiving the milk, unless agreed otherwise.

Grants producers a cause of action in U.S. district courts for handler trust or payment violations.