Funcafé directs R$7.3 billion to finance the 2026/2027 coffee harvest
Mapa (Ministry of Agriculture and Livestock) published in the Official Gazette of the Union this Thursday (21) the ordinance that defines the direction of resources from Funcafé (Coffee Economy Defense Fund) to finance the 2026/2027 harvest. In total, R$7.368 billion will be allocated to credit lines aimed at Brazilian coffee farming.
The resources were approved by the CMN (National Monetary Council) and include marketing operations, coffee acquisition, funding, working capital and recovery of coffee plantations.
The Commercialization line concentrated the largest share of resources, with R$ 2.713 billion, equivalent to 37% of the total approved. Next comes the Coffee Acquisition line, aimed at supporting the market and aimed at different links in the production chain, with R$ 1.708 billion, or 23% of the total.
R$1.616 billion were reserved for Costing operations, corresponding to 22% of the resources. The Working Capital line will have R$1.150 billion, equivalent to 16% of the approved total. Another R$ 180 million will be allocated to the Recovery of Coffee Plantations, representing 2% of the amount.
According to the ordinance, the distribution of resources between financial institutions will be based on criteria defined in a specific normative act, which will still be published by the competent authority.
Mapa's SPA (Agricultural Policy Secretariat), responsible for managing the fund within the ministry, highlighted that Funcafé is considered a structuring instrument for Brazilian coffee farming as it guarantees liquidity to the sector, predictability and quick response in times of climate or market crisis.
In addition to the financing lines, the fund's resources are also directed to research, training of technicians and producers and promotion of Brazilian coffee. Part of these actions takes place through the Café Research Consortium, coordinated by Embrapa Café.
The ministry also published a call for proposals to hire financial institutions that are members of the SNCR (National Rural Credit System) that are interested in acting as financial agents for Funcafé.
According to the notice, proposals must be sent to the email funcafe-contratos@agro.gov.br between Sunday (1st), at 8am, and Monday (15th), at 6pm.
The analysis of proposals will take place between Tuesday (16) and Monday (22). The publication of the list of qualified institutions is scheduled for the period between Tuesday (23) and Friday (26), on the Federal Government Purchasing Portal.
Source: CNN