The traditional divide separating rural America from its urban and suburban counterparts continues to define the challenges facing rural communities. Rural communities are isolated from robust markets, impeding access to markets and making it difficult to move people and goods. Rural areas also have fewer cultural amenities, making it harder to attract new residents and businesses, which in turn hinders the development of new amenities.

Rural economic development policies must build upon the inherent strengths of rural America: abundant natural resources, close-knit communities, strong local business networks and a largely untapped tradition of entrepreneurial creativity. State policies that understand this new environment can be successful in creating sustainable and replicable economic development where it is needed most.

Every state has areas with rural characteristics. Rural areas are often noted for providing an enhanced quality of life and some of the distinctive and treasured dimensions of a state's culture and character. However, these regions also face economic development challenges such as geographic isolation, infrastructure deficiencies, poor links with metropolitan and global markets, and the flight of skilled human resources to metropolitan regions.  Governors have innovative state policy options to help rural areas overcome these challenges and build promise for sustainable rural economic development:

• Adapt cluster-based strategies to rural communities;
• Promote Entrepreneurship Outside of the Agriculture Sector in Rural Communities and Regions; and
• Reinvigorate the Agricultural Sector Through Diversification and Value-Added Agriculture Strategies.