Resolution CMN No. 4954 — Adjusts rules for financing under the Fund for the Defense of the Coffee Economy (Funcafé)

Resolution No. 4,954

The current text of the MCR can be found at the following electronic address:
www3.bcb.gov.br/mcr.

RESOLUTION
CMN NO. 4,954, OF OCTOBER 21, 2021

Adjusts rules for financing under the Fund for the Defense of the Coffee Economy (Funcafé).

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on October 21, 2021, considering the provisions of Article 4, item VI, of Law No. 4,595 of 1964, Articles 4 and 14 of Law No. 4,829 of November 5, 1965, the sole paragraph of Article 4 of Decree No. 94,874 of September 15, 1987, and Article 6 of Law No. 10,186 of February 12, 2001,

R E S O L V E D:

Art. 1 Section 7 (Credit for Recovery of Damaged Coffee Plantations) of Chapter 9 (Fund for the Defense of the Coffee Economy - Funcafé) of the Rural Credit Manual (MCR) shall be amended as follows:

“2 - The use of Credit for Recovery of Damaged Coffee Plantations is admitted until June 30, 2022, subject to the following specific conditions:

a) credit limit per producer, for the area of crops submitted to the procedure of:

I - decoting: R$300,000.00 (three hundred thousand reais), limited to R$6,000.00 (six thousand reais) per hectare;

II - skeletonization: R$750,000.00 (seven hundred and fifty thousand reais), limited to R$15,000.00 (fifteen thousand reais) per hectare;

III - replanting: R$750,000.00 (seven hundred and fifty thousand reais), limited to R$18,000.00 (eighteen thousand reais) per hectare;

IV - uprooting: R$750,000.00 (seven hundred and fifty thousand reais), limited to R$25,000.00 (twenty-five thousand reais) per hectare;

b) the limit referred to in item “a” may cover the area of more than one property;

c) repayment, from the date of contracting the financing for crops submitted to the procedure of:

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

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

III - replanting: within 6 (six) years, including up to 3 (three) years of grace period, with payment in up to 3 (three) annual installments;

IV - uprooting: up to 8 (eight) years, including up to 3 (three) years of grace period, with payment in up to 5 (five) annual installments;

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

e) the Climate Risk Agricultural 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 situated;

f) the conditions of item 1 that do not conflict with the provisions of this item must be observed, prohibiting the same beneficiary from cumulatively contracting credit under the conditions of items 1 and 2.” (NR)

Art. 2 Section 8 (Resource Allocation) of Chapter 9 (Fund for the Defense of the Coffee Economy - Funcafé) of the MCR shall be amended as follows:

“1 - ..................................................................................................................

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f) Section Credit for Recovery of Damaged Coffee Plantations: R$1,318,582,400.00 (one billion, three hundred and eighteen million, five hundred and eighty-two thousand and four hundred reais).” (NR)

Art. 3 This Resolution enters into force on the date of its publication.

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