Map defines direction of Funcafé resources for the 2023/2024 harvest

The Ministry of Agriculture and Livestock (Mapa) defined this Friday (16/06) the direction of budgetary resources to the Coffee Economy Defense Fund (Funcafé). The total resources to meet the financing lines destined for the coffee sector in the 2023/2024 harvest, of R$6,37 billion, was approved by the National Monetary Council in May this year by Resolution 5.072/2019.

According to Ordinance No. 592 , up to R$1,62 billion will be allocated for funding credit, up to R$2,35 billion for marketing credit and up to R$1,48 billion for the Financing for Coffee Acquisition (FAC) line. Credit for working capital for instant coffee, roasting and production cooperative industries was set at R$883 million. Credit for the recovery of damaged coffee plantations was R$30 million. 

Interest rates for Funcafé financing will be established together with the measures of the 2023/2024 Harvest Plan to be announced in the coming days.

If there is a balance of funds contracted and not applied to a line of credit, a new allocation may be made in December 2023.

Financial institutions that are part of the National Rural Credit System interested in operationalizing Funcafé resources in the 2023 financial year will have 10 days to present a proposal for demand for resources and the documentation required for qualification. The guidelines are contained in the ordinance published today. 

“After qualification, contracts will be signed with financial institutions to transfer resources. As a result, from the second half of July onwards, resources will be available to producers, cooperatives, industries and exporters”, explained the director of Commercialization at the Agricultural Policy Secretariat, Silvio Farnese.

In the 2022/2023 harvest, Funcafé had a record performance, investing 96% of the R$6,058 billion that was offered, with 68% of the resource taken in the state of Minas Gerais, 15% in Espírito Santo and 9,9% in São Paulo.