CMN Resolution No. 5,078 — Adjustments to General Rural Credit Rules for Pronamp and Funcafé Effective July 3, 2023

The current text of the MCR is available at the following website: www3.bcb.gov.br/mcr.

CMN RESOLUTION NO. 5,078, OF JUNE 29, 2023

Provides for adjustments to the general rules of rural credit of the National Program for Supporting Medium-Sized Rural Producers (Pronamp) and the Fund for the Defense of the Coffee Economy (Funcafé) to be applied from July 3, 2023.

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on June 29, 2023, considering the provisions of Art. 4, item VI, of Law No. 4,595, of 1964, Arts. 4 and 14 of Law No. 4,829, of November 5, 1965, Arts. 48 and 49 of Law No. 8,171, of January 17, 1991, and Art. 6 of Law No. 10,186, of February 12, 2001,

R E S O L V E D:

Art. 1 The Section 1 (General Provisions) of Chapter 2 (Basic Conditions) of the Manual of Rural Credit (MCR) shall enter into force with the following alteration:

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c) verification, by the financial institution, for the rural property where the rural credit project is located, in accordance with MCR 2-9-11:

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Art. 2 The Section 5 (Utilization) of Chapter 2 (Basic Conditions) of the MCR shall enter into force with the following alterations:

“1 - Rural credit must be released directly to the borrower in a single lump sum or in installments, except in case of specific regulation, into a deposit account, in accordance with the needs of the project, and the utilizations must comply with a schedule of acquisitions and services.” (NR)

“1-A - Operating rural credit with controlled resources must be released directly to the borrower in installments and into a deposit account, in accordance with the payment schedule for the acquisition of products and services foreseen in the budget, with the release of credit in a single installment being admitted, at the discretion of the financial institution, when it concerns financing that has:

a) a repayment term of up to 180 (one hundred and eighty) days;

b) contracted values of up to R$20,000.00 (twenty thousand reais).” (NR)

Art. 3 The Section 2 (Operating Credits) of Chapter 3 (Operations) of the MCR shall enter into force with the following alterations:

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b) .....................................................................................................................

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III - expenses for placing numbered ear tags and microchip capsules in animals;

c) .....................................................................................................................

I - expenses with the acquisition of inputs for the restoration and recovery of legal reserve areas and permanent preservation areas, including pest and invasive species control, maintenance and guidance of natural regeneration of native species, and fire prevention;

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III - expenses for the maintenance of network infrastructure, platforms, and digital data management and connectivity solutions, when related to the financed activity.” (NR)

“6-A - Subject to the conditions set forth in items 6-C and 6-D, operating credit operations contracted from October 2, 2023, shall have the interest rate reduced by at least 0.5 (zero point five) percentage points relative to the maximum interest rate applicable to the financing, in the case of:

a) the credit beneficiary proving that the rural property where the financed project is located meets one of the following CAR registration conditions:

I - analyzed and in compliance with Law No. 12,651, of 2012;

II - analyzed and in compliance with the Environmental Regularization Program (PRA), established by Law No. 12,651, of 2012; or

III - analyzed and in compliance with Law No. 12,651, of 2012, eligible for the issuance of an Environmental Reserve Quota (CRA).” (NR)

(Inclusion of item 6-A revoked by CMN Resolution No. 5,102, of 8/24/2023.)

“6-B - Operations with reduced interest rates that cease to meet the requirements set forth in item 6-A for the granting of the benefit must be reclassified, without prejudice to the applicable administrative and criminal sanctions.” (NR)

“6-C - Regarding the scope of the interest rate reduction referred to in item 6-A, the following requirements must be observed:

a) the following operating credit operations, except those referred to in item “b”, must be subject to the interest rate reduction:

I - operations financed with mandatory resources;

II - operations subsidized by the Union, in the form of financial charge equalization;

b) the following operating credit operations cannot be subject to the interest rate reduction referred to in item 6-A:

I - operations contracted under the National Program for Strengthening Family Agriculture (Pronaf), as set forth in MCR 10;

II - operations contracted by production cooperatives under the conditions set forth in MCR 5.” (NR)

“6-D - When it concerns an operation subsidized by the Union, in the form of financial charge equalization, the interest rate reduction referred to in item 6-A shall be equal to 0.5 (zero point five) percentage points relative to the maximum interest rate applicable to the financing.” (NR)

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a) .....................................................................................................................

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II - 2 (two) years for biennial crops and sustainable forest management;

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Art. 4 The Section 3 (Investment Credits) of Chapter 3 (Operations) of the MCR shall enter into force with the following alterations:

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f) certification of agricultural and livestock production.” (NR)

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e) premium of the insurance of the asset acquired by the investment credit or given as collateral, observing the norms published by the National Council of Private Insurance.” (NR)

Art. 5 The Section 1 (Pronamp) of Chapter 8 (National Program for Supporting Medium-Sized Rural Producers – Pronamp) of the MCR shall enter into force with the following alteration:

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a) beneficiaries: rural producers who are rural owners, possessors, lessees, or partners who:

I - have gross annual income of up to R$3,000,000.00 (three million reais), considering in this limit the sum of 100% (one hundred percent) of the Gross Production Value (VBP), 100% (one hundred percent) of the value of revenue received from an integrating entity and other revenues from activities developed on and off the establishment, and 100% (one hundred percent) of other non-agricultural revenues;

II - have, at least, 80% (eighty percent) of gross annual income originating from agricultural and livestock activity;

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Art. 6 The Section 6 (Credit for Working Capital for Soluble Coffee and Coffee Roasting Industries and for Production Cooperatives) of Chapter 9 (Fund for the Defense of the Coffee Economy – Funcafé) of the MCR shall enter into force with the following alteration:

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d) repayment: within up to 24 (twenty-four) months from the date of credit contracting, in equal installments, with annual or semi-annual periodicity, plus the financial charges due until the date of effective payment of the installments.” (NR)

Art. 7 The Section 7 (Credit for Recovery of Damaged Coffee Groves) of Chapter 9 (Fund for the Defense of the Coffee Economy – Funcafé) of the MCR shall enter into force with the following alteration:

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d) repayment: in annual and subsequent installments, plus the financial charges due until the date of effective payment of the installments, respecting the maximum term and type of procedure, from the date of contracting:

I - decote: up to 2 (two) years, including up to 1 (one) year of grace period;

II - skeletoning: up to 3 (three) years, including up to 2 (two) years of grace period;

III - resprouting: within up to 6 (six) years, including up to 3 (three) years of grace period;

IV - uprooting: up to 8 (eight) years, including up to 3 (three) years of grace period;

e) the budget must be accompanied by a technical report from a qualified agricultural professional;

f) the Agricultural Climate Risk Zoning (Zarc) must be observed, or if the coffee crop is located in a municipality not included in the Zarc, the technical report must indicate its adequacy to the specific conditions of the agroecosystem in which it is located.” (NR)

Art. 8 Item 2 of Section 7 (Credit for Recovery of Damaged Coffee Groves) of Chapter 9 (Fund for the Defense of the Coffee Economy – Funcafé) of the MCR is hereby revoked.

Art. 9 This Resolution enters into force:

I - on October 2, 2023, for items 6-A, 6-B, 6-C, and 6-D introduced into MCR 3-2 by Art. 3 of this Resolution; and

II - on July 3, 2023, for the remaining provisions of this Resolution.

Roberto de Oliveira Campos Neto
President of the Central Bank of Brazil