The survival of rural American farms and communities is dependent upon expansion of income and employment opportunities in rural areas. Recognizing the growing challenge for local leaders and the contribution that educational assistance can make, the Cooperative Extension System has identified Revitalizing Rural America as a priority program for FY 1988-91. This publication analyzes the current situation in rural America and proposes a response to assist in its revitalization. It considers a number of urgent realities generated by changes in the United States and world economies, population shifts, structural changes in agriculture and other natural resource industries, and adjustments in the industrial economy. Among these realities are that hard work and successful manipulation of natural resources do not guarantee economic success; control over local destiny has been diminished; rural areas are more dependent on volunteer leadership; service demands on local governments are growing as revenues diminish; and human/financial capital are flowing out of many rural areas. Coming to grips with these and other changes presents challenges including maintaining/enhancing competitiveness of farms and rural businesses; diversifying rural economic bases; finding alternative uses for rural resources; easing the transition for farm families and youth; providing technical/educational assistance to local governments; helping communities identify/implement policy options to increase jobs and income; and assisting with conservation/management of natural resources. (NEC)