Adjustments to Funcafé to recover crops affected by frost will help the resumption of coffee farming

The president of the National Coffee Commission of the Brazilian Agriculture and Livestock Confederation (CNA), Breno Mesquita, said that the adjustments to the credit line of the Coffee Economy Defense Fund (Funcafé) for the recovery of crops affected by frost was a measure necessary for producers to be able to remain in activity.

The decision was approved, on Thursday (21), at a meeting of the National Monetary Council (CMN), meets the CNA's demand and will allow producers to borrow up to R$ 25 thousand per hectare to recover damaged coffee plantations depending on the level of damage.

Since the occurrence of the frosts that strongly affected the Arabica coffee producing regions of Minas Gerais, São Paulo and Paraná, the production sector has been debating ways to help coffee growers and the R$1,3 billion credit line was one of the measures.

“As rural insurance is still not very widespread and the frosts strongly affected the country's coffee producers, financing with adjustment of values ​​and deadlines becomes extremely necessary so that coffee growers and Brazilian coffee farming are able to recover from this climate event, with economic sustainability”, stated Mesquita.

Producers who had at least 10% of the affected area will have access to credit. Producers must also comply with the Agricultural Climate Risk Zoning (ZARC), as well as present a technical report issued by an agronomist engineer accredited by the financial agent or by the State Technical Assistance Company (Emater), indicating the damaged area, the intensity of the losses and how to recover the productive capacity of coffee plantations.

The credit request must be formalized within ten months after the event and the line will have an interest rate of 7% per year. The deadlines, grace period and limit per hectare, followed the recommendation of the Coffee Policy Deliberative Council (CDPC) are available in the table below according to the type of pruning to be carried out in the area.