The fourth annual secretary of agriculture report on rural development progress (prepared in response to a directive from the Rural Development Act of 1972) presents the most recently available status data on employment, income, population, housing, and community services and facilities, discusses examples of federal efforts to improve or expand delivery of services in key areas and summarizes rural concerns and developmental responses from a sampling of states. This year, for the first time, the annual report also looks at target population groups, such as the rural elderly, handicapped, social security recipients, and those who receive Aid to Families with Dependent Children. Indicating whether there has been progress in stated rural development goal areas, the report also discusses examples of efforts by several federal agencies to improve or expand delivery of services in rural health care, housing, and manpower/employment programs and summarizes four important innovations in rural education around the country (Regional Educational Service Agencies, or RESA, rural community colleges, rural school improvement projects, community development). Part three contains material on rural development trends, concerns, and responses from 21 states; content categories are income and employment, population, housing, health, education, water and waste, and transportation. (RS)