The department shall agree that the cutting from combined national forestlands, state forestlands, and state lands will be limited to the sustained yield capacity of these lands in the management unit as determined by the contracting parties and approved by the board for state forestlands and by the department for state lands. Cooperation with the private contracting party or parties shall be contingent on limitation of production to a specified amount as determined by the contracting parties and approved by the board for state forestlands and by the department for state lands and shall comply with the other conditions and requirements of such cooperative agreement.