Although rural education is entering an era of opportunity in terms of both youth and adult needs, the capacity of rural areas to provide needed educational services may be diminished due to rapid economic and social change, particularly in agriculture. Three federal policies operating over the past two decades have created an unfavorable environment for agriculture. Further factors such as adverse weather brought many farms and ranches to a point that made them vulnerable to those policies' impacts. Total farm debt rose to over $216 billion in 1983 before declining somewhat in 1984-1985. Unlesss something is done, more than one third of the farmers will move to insolvency, inflicting serious damage upon the rural community. Policy alternatives developed in 1985 could have an effect on the relationship of commodity prices to land values and capital to labor. As more farms liquidate, the demand for adult education and expanded programs for youth will increase, while available education funds will decrease due to fewer property tax revenues and diminished federal funding caused by out-migration. New education delivery strategies must be formulated as these shifts occur. Statistical information is displayed in graphs and tables throughout the text. (PM)