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MONTGOMERY, Ala. — Alabama Ag Credit, a rural lending cooperative serving southern Alabama, recently declared a record $7.04 million cash patronage to its customer-owners (members).

The co-op’s board of directors approved this amount based on its strong 2014 financial results.

Patronage payments are determined by the amount of business a member does with the co-op and effectively lowers the members’ overall cost of borrowing.

“This all-cash patronage is but one example of how Alabama Ag Credit is committed to honoring our cooperative principle of sharing our earnings with our members,” said board chairman Jimmy Bassett.

“Sending cash back to those who do business with us, and in turn strengthening our local economies make us all very proud of the work we do at Alabama Ag Credit.”

Alabama Ag Credit has a long history of sharing earnings with its members when it performs well.

Including this year’s payment, the co-op has returned nearly $44 million in cash since 2006.

A member of the nationwide Farm Credit System, Alabama Ag Credit provides financing for farms, timber and forestry operations, agribusinesses, recreational land and other rural property in 40 counties in southern Alabama.

The financing co-op operates offices in Demopolis, Dothan, Enterprise, Gulf Coast, Monroeville, Montgomery, Opelika, Selma and Tuscaloosa.