Emphasizing developmental problems caused by the rapid population and economic growth in rural America during the 1970’s, this document describes socials, economic, and governmental trends in rural America and suggests some federal policy choices that might be made in support of rural development. Problem areas and policy suggestions are presented as follows: (1) diversity and isolation cause rural poverty to differ from urban poverty, and policy development must acknowledge this difference; (2) changing patterns in rural growth and settlement necessitate the applications of new forms of organization and technology for more effective planning and services n rapidly growing isolated areas; (3) the increasingly nonagricultural character of rural areas affects rural economy (therefore, economic development policy should address the needs of the entire rural population); (4) economic and political natures of local governments must be understood in order to correlate their actions and effectiveness in the framework of federal capacity building; and (5) 1976 analysis of federal spending in rural America illustrates difficulties in assessing the equity of rural spending for rural health, education, and manpower programs. More study is needed regarding urban bias and federal policy for adequate rural programs.