As required by the Agricultural Act of 1970, the President has submitted to Congress this second annual report on the availability of government and government-assisted services to rural areas. The report pinpoints the strengths and weaknesses of those Federal programs which have a significant impact on rural America and identifies the Administration's efforts to remedy existing deficiencies. Emphasis in this report is given to (1) income and population trends in relation to objectives for balanced growth; (2) the relationship of geographical distribution of Federal outlays to the patterns of population and income change; (3) an evaluation of the allocation of Federal outlays between rural and urban areas with particular reference to education, manpower, health, and welfare services; and (4) recent changes in the allocation of Federal outlays between rural and urban areas. Overall, Federal outlays to urban and rural areas are allocated approximately in relation to the urban-rural populations ratio. It is concluded that some rural areas experienced significant increases in population and income in the past decade, and many did so without the stimulus of added Federal aid. Others declined in population and income despite continued Federal spending in those areas. The recommendations include broadening and expanding rural credit payments to include guaranteed and insured loans for community facilities and establishing industrial and commercial job-creating facilities in rural areas. (HBC)