While increased movement of industry into rural areas has whittled away at rural poverty in the United States, the question arises whether this transformation of rural landscape is good or bad. Evaluation should detail its effect on both human and natural resources. Though reduction of poverty is important to quality of life, increased industrialization has also caused disorientation about basic values. Looking at four traditional qualities of agrarian life--control and self-sufficiency, homogeneity of interests, naturalness, and creativity--one can follow the divisive impact of industrialization on a farmer changed from manager to worker, whose self-interests are now tied more to outside than local interests. Future public policy toward development of rural America must encourage human resource development and natural resource conservation. Essential steps to effective policy include: incentives to locate industry where jobs are most needed and to preserve best farmland; effective worker training programs tied to policies to attract hard-core unemployed and underemployed to new industry jobs; encouragement of cooperatives, community development corporations, and other local initiative; more public monies spent on small communities and research to reduce costs of providing needed services to them. (RS)