AgriLand Farm Credit, ACA, serving east, northeast and southeast Texas, has declared $4.3 million in patronage to its customers, based on the association’s financial performance in 2008.

The AgriLand Farm Credit Board of Directors approved the patronage distribution, which consists of nearly $0.4 million in cash and $1.4 million in qualified allocated equities for potential future distribution. The board also issued $2.5 million in nonqualified allocated equities to be used to fund the cooperative’s growth.

Stockholders will receive their portions of the cash patronage distribution at nine AgriLand regional customer appreciation meetings to be held between mid April and late May.

“We are pleased to continue our long history of sharing our financial success with our stockholders,” said Roger Brist, AgriLand chief executive officer. “And, in the face of the current challenging economic conditions, we are proud to be able to stand by our member-owners with this year’s refund.”

AgriLand has continuously offered patronage refunds to customers since 1994. Patronage refunds effectively lower the interest rate paid by the co-op’s borrowers.

Patronage payments like this one are an essential aspect of the lender’s cooperative business philosophy. AgriLand Farm Credit is owned by its borrowers: farmers, ranchers, agribusinesses, rural homeowners and other rural landowners. Every year, the board reviews the financial results and decides how much of the association’s earnings need to be maintained as capital to fund growth and operations. The remainder is returned to its borrowers.