Emphasizing developmental problems caused by the rapid population and employment growth in rural America during the 1970's, this document describes social, 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 application of new forms of organization and technology for more effective planning and services in rapidly growing isolated areas; (3) the increasingly nonagricultural character of rural areas effects 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 federal spending for rural health, education, and manpower programs. More study is needed regarding urban bias and federal policy for adequate rural programs. (JD)