National Dairy Policy Act of 2003 - Amends Federal law to direct the Secretary of Agriculture to use the Department of Agriculture's preferred Option 1B as the price structure for Class I fluid milk under Federal milk marketing orders.Directs the Secretary to make emergency market loss payments to dairy producers in the 48 contiguous States, including producers on farms not covered by milk marketing orders, whenever the national average for Class III milk under Federal milk marketing orders for a calendar year quarter is less than a specified target price.
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