UPDATE 1-Congress, W. House seen $4 bln apart on farm law

(Adds Congress to vote on one-month extension; paragraphs 3-4, 9, 12-13)

By Charles Abbott

WASHINGTON, March 11 (Reuters) - Congress and the Bush administration are $4 billion apart on funding for the new U.S. farm law and where to spend the $10 billion increase, such as a standby disaster program, said two Senate chairmen on Tuesday.

Congress was not expected to complete work on the farm law until mid-April, six months behind schedule. Negotiators hope to agree on a farm bill "framework" on funding, allocation of money and overall policy by week's end.

Lawmakers could act as early as Wednesday to extend parts of the 2002 farm law until April 18, to allow more time to work out a final version of the new law.

Leaders of the House and Senate Agriculture Committees said there was no agreement yet on crop subsidy rates, stricter payment limits on crop subsidies or "revenue protection" for farmers against poor yields as well as low prices.

There were signs the administration may accept creation of an ever-ready disaster program costing $4 billion to $5 billion. It is a priority of senators from the northern Plains, who feel the government is slow to act when crops fail.

Farm bills, written every few years, are omnibus legislation covering crop subsidy, public nutrition, land stewardship, export, rural development and biofuel programs. Nutrition will get two-thirds of the money in the new law.

"There is still a gap between what we need and what we've agreed to," said Senate Budget Committee chairman Kent Conrad, North Dakota Democrat, during a session with soybean growers.