Northwest Farm Credit Services, of Spokane, has reported 2008 net income of $124.4 million, up from $114.1 million in 2007, and says its net loans grew by an unusually high 20 percent last year, to more than $7.8 billion.

The federally chartered ag-lending cooperative also reported that its capital increased last year by 6.4 percent to $1.1 billion.

"In 2008, we experienced another year of strong financial performance, significant loan growth, minimal loan delinquencies, and net income levels that exceeded our projections," President and CEO Jay Penick says. "Despite the country's financial turmoil, FCS continues to be able to access and loan funds in a very volatile market at rates which allow us to be competitive."

For 2009, in both the general economy and in agriculture, swings in commodity prices will be more volatile, Penick says.

"We are anticipating that agricultural producers generally will have lower levels of profit than they've seen in past years," he says.

Northwest Farm Credit says its assets grew to $8.3 billion last year, up from $7 billion at the end of 2007. It says its return on average assets was 1.63 percent in 2008, off slightly from 1.76 percent in 2007.

Borrowers were delinquent on 0.8 percent of the cooperative's loan portfolio as of Dec. 31, up from 0.6 percent at the end of 2007.