The Senate will be in session next week, but the House of Representatives will not, so farm bill negotiators admitted this week that they will not finish their work before Congress adjourns.  Farm bill talks will take place today amid increased optimism that a deal can be reached soon, based on  encouraging new cost estimates from the Congressional Budget Office.  Winter storms in Washington, D.C. this week reportedly kept the Congressional Budget Office from completing its key cost estimates lawmakers need to continue their negotiations.

Meanwhile, House Agriculture Committee Chairman Frank Lucas (R-OK) filed a short-term extension this week for the current farm bill, which expires at the end of this month.  The House Rules Committee voted 9 to 3 on Wednesday to bring it up under a closed rule, which meant no debate, and the House quickly approved the measure yesterday, which extends the farm bill through January 31.

Optimisim on Capitol Hill is increasing that a deal can be reached soon.  “We’re on track to get this done,”  said Rep. Collin Peterson (D-MN), one of the leading House farm bill negotiators.  Although significant progress by chief negotiators has been reported as they work to cut a deal that would pass both houses, lawmakers have struggled to resolve differences over food stamps, farm subsidies, crop insurance,  and other issues.

Despite the House’s extension, that proposal is highly unlikely to be taken up by the Senate as it would prefer to focus on passing a complete, five-year farm bill early next year.  “Let them vote on it.  We’re not going to do it,” Senate Majority Leader Harry Reid (D-NV) said.  One of the farm bill’s four principal negotiators, Senate Agriculture Committee Chair Debbie Stabenow (D-MI) said “We are very confident that we are going to have an agreement.  We will be ready to vote in January.”  House Agriculture Committee Chairman Frank Lucas (D-OK) is also pushing hard for a conference agreement in early January.

It is possible that a framework for a farm bill agreement may be reached by the end of 2013, even though the House will be on recess as the two principal negotiators — Reps. Lucas and Collin Peterson — have said they will return to Washington next week to work with their Senate counterparts — Senators Stabenow and Thad Cochran (R-MS) — to complete a framework for a unified farm bill.

If the current farm bill expires, milk prices would be impacted.  With a lapse in legislation, the government would have to follow a 1949 dairy program that would force the federal government to buy milk at inflated prices, which would result in higher prices for consumers.  However,  USDA this week said that any impact on milk prices would not occur until three or four weeks after the farm bill expires and can be avoided if a new farm bill is in place sometime in January.