Alabama Ag Credit, a rural lending cooperative serving southern Alabama, recently declared a $7.8 million cash patronage to its customers. This record amount was based on the co-op’s strong 2016 financial results and was approved by the Alabama Ag Credit Board of Directors.

Patronage payments are based on the amount of business a borrower does with the co-op and lower the borrowers’ cost of borrowing. As a cooperative, Alabama Ag Credit is owned by its borrowers-stockholders. When the co-op performs well, it shares its earnings with its stockholders.

“We’re proud of our Association’s strong financial results.  In 2016 loan volume grew, credit quality continued to improve and our earnings and capital remained strong,” said James L. Bassett, chairman of the Alabama Ag Credit Board of Directors. “This financial strength allows us to return a record patronage to our borrowers – one of the greatest ways we leverage our cooperative principles.”

As a member of the nationwide Farm Credit System, Alabama Ag Credit has a long history of sharing earnings with its customers. The co-op has returned more than $58 million in cash to its borrowers since 2006.

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, Spanish Fort and Tuscaloosa.