Discusses service industries' role in developing economies of rural areas. Describes ways service industries generate employment and local income and blend with a local economy. Summarizes survey of contributions to local economies and what attracted them to their communities for 385 service firms in nonmetropolitan Wisconsin. Tables provide…

Through 1987, 10 percent of foreign investment was in nonmetro counties; 44 percent of this was in the South; and 38 percent of nonmetro foreign investment created new jobs (versus 17 percent in metro areas). Foreign investors chose nonmetro areas with low wages, lack of unionization history, good transportation access, and government incentives.…

The structure of nonmetro employment has become increasingly diverse and decreasingly agricultural. The precise policy implications of these shifts are not self-evident, but the increasingly nonagricultural character of the rural economy is at the heart of the population turnaround. (Author/KR)

Describes and identifies U.S. labor market areas (LMAs) and focuses on relationships between rural LMAs and local resources. Includes graph comparing labor-force educational levels of rural LMAs. Two U.S. maps identify rural LMA by industry, including resource (e.g. mining, agriculture), manufacturing, and public education/administration. (TES)

Bank failures are at record high levels with about two-thirds of the failed banks in rural areas, especially farm areas. Most failed banks are purchased and reopened immediately with little disruption to rural communities except that new ownership tends toward lending practices that are more conservative than the average. (JHZ)

Small farmers are a diverse group, ranging from part-time hobbyists with good off-farm jobs to full-time operators. General rural development policies, rather than traditional farm policies, may be the best method to help those small farmers who earn insufficient income. (JHZ)

Since 1905, the Forest Service has influenced rural economies by managing timber harvests from federal lands to avoid boom/bust cycles. The Forest Service goal of "community stability" is now shifting to one of helping rural communities to diversify their economies through wise use of all forest resources. (SV)

Interest rates are the primary channel for transmitting changes in national and international macroeconomic policy to the United States farmer. Interest rates affect demand through exchange rates that determine the prices foreigners pay. They affect supply through farmers' production costs that determine the price they need to stay in business.…

Business incubators can help fledgling firms get off the ground by providing business services and rental space, at below-market costs, for a business's first few years. The payoff for the community is more jobs. Concentrated until recently in urban areas, incubators are now succeeding in rural areas too. (JHZ)

After decade of growth, rural income, population, and overall economic activity have stalled and again lag behind urban trends. Causes include banking and transportation deregulation, international competition, agricultural finance problems. Only nonmetropolitan counties dependent on retirement, government, and trade show continuing income growth…

Problem farm debts may translate into slow growth for rural communities, with local banks unable to offer credit even to credit worthy borrowers. Communities served by branches of large banking organizations are probably better off than communities served only by small independent banks. (Author)

Examines the advantages and disadvantages of diversification as a strategy for economic development. In particular, rural economies that specialize in government and education tend to perform well. Includes map of U.S. labor market areas (LMAs), graphs and table comparing rural and urban LMAs' income and employment rates. (TES)

Income has become somewhat more concentrated among upper-income families since 1967 and growth of total income has slowed since 1973. Both trends suggest a widening income gap between metro and nonmetro areas because nonmetro areas have a higher proportion of low-income families and slower income growth. (JHZ)

In spite of government transfer programs, 10 percent of the United States population remained in poverty after all transfers were made in 1983. In nonmetro areas the poverty rate was 12.8 percent. Many were working poor (taxes reduced their earnings) who will benefit from recent tax reform that lessens their tax burden. (JHZ)

Survey information from 1,616 farm families in Wisconsin, Mississippi, and Tennessee was used to construct a viability ratio measuring a family's ability to meet its obligations from total income. Coupled with other farm characteristics, the ratio allows policymakers to see why some farms are viable and others are not. (JHZ)