The Ministry of Agriculture (Mapa) published ordinances No. 697 and No. 698 that direct and establish criteria for the use of more than R$6,8 billion allocated to the Coffee Economy Defense Fund - Funcafé. The resources were approved by the National Monetary Council through CMN Resolution No. 5.138, of May 23, and published in the Official Gazette of the Union this Wednesday (3).
“The published ordinances regulate the operationalization of a record volume of Funcafé resources aimed at financing Brazilian coffee farming. We are working to release the resources to coffee growers and other beneficiaries of the Fund”, stated Mapa's Assistant Secretary for Agricultural Policy, Wilson Vaz.
For the 2024 fiscal year, more than R$1 billion were allocated for funding; more than R$2 billion for commercialization; and more than R$1,6 billion for financing the acquisition of grain. Also according to Ordinance No. 697, more than R$1 billion in credit designated for working capital for the instant coffee and coffee roasting industries and for production cooperatives; and up to R$30 million for the recovery of damaged coffee plantations.
Resources will be distributed among financial institutions based on defined criteria.
Financial institutions that are part of the National Rural Credit System - SNCR that are authorized to operate Funcafé resources and interested in becoming accredited with the Fund in order to operationalize resources for the 2024/2025 Harvest, must follow the procedures that will be established in notice that will be published by the Mapa Agricultural Policy Secretariat.
In accordance with Ordinance No. 698, the criteria for the distribution of resources from the Coffee Economy Defense Fund - Funcafé, among financial institutions interested in operationalizing the Fund's resources, will be guided by the number of credit operations carried out, based on the contract signed between the financial institution and the Ministry of Agriculture and Livestock in the previous year.
Another criterion is the percentage of investment of resources contracted by the financial institution with the beneficiaries of the credit lines, also in relation to the contracted value.
According to the Agricultural Policy Secretariat, in compliance with recommendations from the Ministry's legal department, as a result of the regulation of art. 79 of the new bidding law (Law 14.133/2021), the call for FIs for the next contracts will occur through an Accreditation Notice and non-requirement of bidding, the relevant documents of which are in the preparation phase by the responsible technical area.
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