Resolution CMN No. 5,021 — Adjusts General Rules for Rural Credit and Financing Supported by the Coffee Economy Defense Fund (Funcafé) Effective July 1, 2022

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

RESOLUTION
CMN NO. 5,021, OF JUNE 29, 2022

Adjusts general rules for rural credit and financing supported by the Coffee Economy Defense Fund (Coffee Economy Defense Fund - Funcafé) to be applied from July 1, 2022.

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 an extraordinary session held on June 29, 2022, 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, Articles 48 and 49 of Law No. 8,171, of January 17, 1991, and Article 6 of Law No. 10,186, of February 12, 2001,

R E S O L V E D:

Article 1. Section 2 (Operating Credit) of Chapter 3 (Operations) of the Rural Credit Manual (MCR)
shall enter into force with the following alterations:

“3 - ...................................................................................................................

.........................................................................................................................

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

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

................................................................................................................” (NR)

“6 - ...................................................................................................................

.........................................................................................................................

c) the beneficiary presents proof of one of the following conditions of registration in the Rural Environmental Registry (CAR) of the rural property where the operating credit project is carried out:

I - analyzed, in accordance with Law No. 12,651, of May 25, 2012;

II - analyzed, in environmental regularization (Law No. 12,651, of 2012); or

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

Article
2. Section 3 (Investment Credit)
of Chapter 3 of the MCR shall enter into force with the following alterations:

“2 - ...................................................................................................................

.........................................................................................................................

g) electrification, including the implementation of systems for generation and distribution of energy produced from renewable sources, for own consumption, provided that the project must be compatible with the energy demand needs of the productive activity installed on the rural property;

h) rural telephony, and equipment and other items related to connectivity systems in the countryside;

i) adoption of conservationist practices for the use, management and protection of the soil-water-plant system, including correction of soil acidity and fertility, and acquisition, transport, application and incorporation of inputs (limestone, remineralizers registered with the Ministry of Agriculture, Livestock and Supply – MAPA and others) for these purposes.” (NR)

“3 - ...................................................................................................................

.........................................................................................................................

e) software and licenses for management, monitoring or automation of productive activities.” (NR)

Article 3. Section 1 (Pronamp) of Chapter 8 (National Program for Support to Medium Rural Producers – Pronamp) of the MCR shall
enter into force with the following alteration:

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

.........................................................................................................................

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

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II

• investment, including the acquisition, alone or not, of used machines,
  equipment and implements manufactured in Brazil, refurbished and with a warranty certificate issued by an authorized dealer or reseller, the warranty certificate may be replaced by an evaluation report issued by the technical responsible for the project attesting to national manufacturing, perfect functioning, good condition of conservation and that the estimated useful life of the asset is greater than the financing repayment period, subject to the provisions of item 5; and the implementation of systems for generation and distribution of energy produced from renewable sources, for own consumption, provided that the project must be compatible with the energy demand needs of the productive activity installed on the rural property;

................................................................................................................” (NR)

Article
4. Section 1 (General Provisions) of
Chapter 9 (Coffee Economy Defense Fund – Funcafé) of the MCR shall
enter into force with the following alteration:

“1

• ...................................................................................................................

.........................................................................................................................

f)
......................................................................................................................

........................................................................................................................

II

• once released to the final beneficiaries of the credit lines: at a rate
  of 8% p.a. (eight percent per year) applied to the nominal value of the operation;

................................................................................................................” (NR)

Article 5.
Section 2 (Operating Credit) of
Chapter 9 of the MCR shall enter into force with the following alterations:

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

.........................................................................................................................

d) repayment: in a single installment, up to 60 (sixty) calendar days, counted from the date for the end of the harvest stated in the credit contract, respecting the maximum period established in MCR 3-2-13-“a”-III, plus the financial charges due until the date of effective payment.” (NR)

“3 - The conversion of operating credit into marketing credit referred to in item 2 is conditioned:

................................................................................................................” (NR)

Article 6.
Section 3 (Marketing Credit) of Chapter 9 of the MCR shall enter into
force with the following alteration:

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

.........................................................................................................................

g) .....................................................................................................................

.........................................................................................................................

II - the second, with maturity up to 180 (one hundred and eighty) calendar days from the date of maturity of the first installment, in the amount of the remaining debt balance, plus the financial charges due until the date of its effective payment;

................................................................................................................” (NR)

Article 7.
Section 4 (Financing for Coffee Acquisition – FAC)
of Chapter 9 of the MCR shall enter into force with the following alteration:

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

.........................................................................................................................

g) .....................................................................................................................

.........................................................................................................................

II - the second, with maturity up to 180 (one hundred and eighty) calendar days from the date of maturity of the first installment, in the amount of the remaining debt balance, plus the financial charges due until the date of effective payment;

................................................................................................................” (NR)

Article 8.
Section 5 (Credit for Options Contracts and Operations in Futures Markets)
of Chapter 9 of the MCR shall enter into force with the following alteration:

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

.........................................................................................................................

e) repayment: in a single installment, coincident with the settlement period of the futures or options market operation, limited to 360 (three hundred and sixty) days counted from the date of contracting, plus the financial charges due until the date of effective payment.” (NR)

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

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

.........................................................................................................................

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

Article 10.
Section 7 (Credit for Recovery of Damaged Coffee Plantations) of Chapter
9 of the MCR shall enter into force with the following alteration:

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

.........................................................................................................................

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

................................................................................................................” (NR)

Article 11. Section 6 (Cooperative Development Program for Aggregation of Value to Agro-industrial Production –
Prodecoop) of Chapter 11 (Programs with BNDES Resources) of the MCR shall enter into force with the following alteration:

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

.........................................................................................................................

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

.........................................................................................................................

XIII

• acquisition of equipment, solutions and services for precision agriculture,
  including those intended for connectivity and for data storage and processing;

................................................................................................................” (NR)

Article 12. Section 7 (Program for Reduction of Greenhouse Gas Emissions in Agriculture – Program ABC) of Chapter 11 of the MCR
shall be renamed “Program for Climate Adaptation and Low Carbon Emission in Agro-industry (Program ABC+)”.

Article 13.
Section 7 (Program for Climate Adaptation and Low Carbon Emission in Agro-industry – Program ABC+) of Chapter 11 of the MCR shall enter into force with the following
alterations:

“1

• The Program for Climate Adaptation and Low Carbon Emission in Agro-industry (Program
  ABC+) is subject to the following specific conditions:

.........................................................................................................................

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

I - recovery of degraded pastures (ABC + Recovery);

II - implementation and improvement of organic agro-industrial production systems (ABC + Organic);

III - implementation and improvement of no-till farming systems (ABC + No-Till);

IV - implementation and improvement of integrated crop-livestock, crop-forestry, livestock-forestry or crop-livestock-forestry systems and agroforestry systems (ABC + Integration);

V - implementation, maintenance and improvement of commercial forest management, including those intended for industrial use or charcoal production (ABC + Forests);

VI - adequacy or regularization of rural properties in accordance with environmental legislation, including recovery of legal reserves, permanent preservation areas, recovery of degraded areas and implementation and improvement of sustainable forest management plans (ABC + Environmental);

VII - implementation, improvement and maintenance of waste management systems from animal production for energy generation and composting (ABC + Waste Management);

VIII - implementation, improvement and maintenance of oil palm forests, primarily in degraded productive areas (ABC + Oil Palm);

IX - encouragement of the use of biological nitrogen fixation, plant growth-promoting microorganisms and multifunctional products, as well as production for own use, on rural properties, of bioinputs and biofertilizers, including the implementation or expansion of production units (ABC + Bioinputs);

.........................................................................................................................

XI - adoption of conservationist practices for the use, management and protection of natural resources, including correction of soil acidity and fertility (ABC + Soil Management);

d) eligible items, since linked to projects intended for the purposes related in item “c”, in individual or collective operations:

.........................................................................................................................

VI - acquisition, transport, application and incorporation of agricultural correctives (limestone and others) and remineralizers registered with the Ministry of Agriculture, Livestock and Supply (MAPA);

.........................................................................................................................

X - implementation of nurseries for forest seedlings, and açaí, cocoa, olive, walnut and oil palm;

................................................................................................................” (NR)

Article
14. Item XII of item “c” of item 1 of Section 7 of Chapter 11 of the MCR is revoked.

Article 15. This Resolution enters into force on July 1, 2022.

Paulo
Sérgio de Neves Souza
President of the Central Bank of Brazil, substitute