Diversification of rural economies and changes in financial markets and world trade have broken down many barriers that insulated rural areas in the past. United States rural areas--the rural South and Northeast in particular--now appear to be affected slightly more than urban areas by national monetary and fiscal policies. (JHZ)

Discusses characteristics of counties with high poverty rates--sparser population, larger proportion of poor and most poverty-prone populations, less educated population, greater reliance on transfer payments, and higher proportions of income from farming. Suggests that government assistance in the form of income transfers could help alleviate…

The persistent poor make up only about a third of all the poor, and the rest are temporarily poor because of sudden changes in their lives--loss of job, marital breakup, or illness. The two groups of rural poor have different needs and will be helped by different types of programs. (JHZ)

Farm policy alone is no longer a sufficient development policy for today's rural America. Rural economies have changed over the last 30-40 years from reliance on farming to greater reliance on manufacturing and service industries. Rural economic development policies need to reflect today's changed rural economy. (Author)