As the second annual report on policies and programs designed to improve the quality of life in U.S. rural and nonmetropolitan regions, this report: (1) presents tentative qualitative goal statements; (2) sets forth results-oriented quantitative goals for programs funded under provisions of the Rural Development Act of 1972; (3) describes the processes designed to validate and refine these goal statements and targets; and (4) presents data reflecting U.S. Department of Agriculture rural development activities during 1974. Rural development legislation provides the basis for national goals on employment, income, population, housing, and quality of community services, and this report articulates both qualitative and quantitative goals for each of these major areas. The qualitative goals are articulated as follows: (1) Assist in the creation of a climate conducive to growth in the employment base of rural America; (2) Contribute to the development of job opportunities in rural areas which generate incomes equal to the purchasing power in metropolitan areas; (3) Support a balance between rural and metropolitan populations compatible with the overall national quality of life and economic health; (4) Facilitate the attainment of access to standard quality housing; (5) Aid local governments to provide equal access to community facilities and services for nonmetropolitan residents. (JC)