Alabama Ag Credit, a rural lending cooperative serving southern Alabama, recently declared a record $7.04 million patronage to its customer-owners.

The cooperative’s board of directors approved this amount based on its 2014 financial results.

Patronage payments are determined by the amount of business a member does with the cooperative 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.”

Including this year’s payment, the Alabama AG Credit 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 cooperative operates offices in Demopolis, Dothan, Enterprise, Monroeville, Montgomery, Opelika, Selma and Tuscaloosa and along the Gulf Coast.