CoBank's earnings rose 24 percent in 2007, driven by strong growth in loan volume to agricultural and utility customers, the cooperative bank said Tuesday.

Net earnings rose to $416 million, up from $335 million in 2006. Net interest income rose 23 percent to $645 million, compared with $525 million in 2006.

Average loan and lease volume for the year was $35.4 billion, up 23 percent year over year. Total loans and leases outstanding were $40.5 billion, up from $33.1 billion at the end of 2006.

The grain and oilseeds markets, along with increased prices and demand for farm supplies, were a primary driver of loan volume. Lending also increased to Farm Credit associations and rural energy customers.

CoBank is a $52 billion Denver-based cooperative bank that provides financing to rural cooperatives and agricultural and utility enterprises. It is part of the $186 billion U.S. Farm Credit System and finances agricultural exports.