Lote Lens: Apr 01-07
Policy & Industry Briefing, 2026 Edition
1. Trade Policy: Cecafé Challenges EUDR Ambiguities
On April 1, Cecafé presented three critical demands to the European Commission regarding the revision of the EU Deforestation Regulation (EUDR): recognition of official Brazilian data, clarity on agroforestry systems, and climate adaptation exemptions. The EU indicated new explanatory documents will be released by late April.
Context: This pushback mirrors Cecafé’s successful lobbying in late 2024, which secured a phased implementation timeline. The current focus on agroforestry addresses fears that the initial text would penalize shade-grown and integrated systems common in regions like Mantiqueira de Minas and Cerrado Mineiro.
Implication: If accepted, recognizing official data could significantly lower compliance costs for the 99% of exporters represented by Cecafé. However, the “agroforestry” definition remains a high-stakes negotiation point for producers in shaded regions.
Source: Cecafé
2. Government Leadership: André de Paula Takes Helm at MAPA
The Ministry of Agriculture (MAPA) saw a leadership transition on April 1 with the swearing-in of Deputy André de Paula. The CNC emphasized the indispensability of Funcafé during the ceremony, and the new minister pledged continuity in existing actions.
Implication: Early signals suggest stability in funding mechanisms like Funcafé, crucial for the 2026/27 harvest. However, the shift from a traditional agribusiness figure to a politician with a background in fishing warrants monitoring regarding specific agricultural prioritization and resource allocation.
Source: CNC
3. Fiscal Policy: Family Farmers Exempt from Funrural Hike
The Federal Revenue Service clarified that family farmers (segurado especial) are exempt from the 10% increase in Funrural contributions mandated by Complementary Law 224/2025, effective April 1, 2026.
Data Snapshot: Among Cooxupé's membership (Brazil's largest cooperative), 97.6% are small and medium producers. This exemption protects the capital of the vast majority of the sector's base, contrasting sharply with the 10% hike that will apply to large commercial estates (patronal).
Implication: This removes a potential cost burden for 4 million small producers, preserving capital for reinvestment in the 2026 harvest cycle. For large exporters, the cost of labor and production for non-family segments will rise.
Source: Conexão Safra via MDA
Regulatory Watch: ES Launches R$ 44M Rio Doce Recovery Plan
The Espírito Santo government announced R$ 44 million in investments under the “Novo Acordo do Rio Doce” (STF 2024), focusing on land regularization and environmental recovery in the Litoral Norte and Rio Doce basins.
Why it matters: The land regularization component is critical for coffee producers in these regions. Clear land titles are a mandatory requirement for EUDR compliance. This funding could accelerate the resolution of tenure issues that currently block exports for farms in the affected areas.
Source: Incaper