Rural development is broader than just agriculture. Farm policy cannot solve rural community problems. Rural problems are sufficiently unique to require special emphasis and special programs. Since rural development has a broader focus than the local community, its problems need to be addressed by all levels of government as well as the private sector. Different areas of the country present different rural situations, and flexibility is needed to address rural problems. Solving rural problems requires establishing and prioritizing goals and programs within goals. Explicit goals are needed to guide implementation and to provide standards by which program performance can be measured. Some problems cannot be solved by local or state governments without federal leadership and assistance. At the federal level, rural development policy begins with creating an overall national economic environment for growth in income, employment, and economic vitality. Six strategic areas with problems sufficiently pervasive to justify an appropriate federal role are: (1) income and employment policy; (2) education and retraining; (3) eliminating rural poverty; (4) utilizing and protecting natural resources; (5) improving rural health delivery systems; and (6) financing rural services. (ALL)