The Challenge of US Rural Development
The first challenge of discussing US rural areas is to define them. I remember once reading a poetic definition that a rural area is a place where the shape of the land matters. But the US Census takes a different approach. It classifies each of the 3,141 counties in the United States as metropolitan, micropolitan, … Continue reading The Challenge of US Rural Development The post The Challenge of…
Defining rural areas in the US can be challenging, as the Census Bureau classifies counties into metropolitan, micropolitan, or neither. The "neither" category includes areas without a large urban center or access to a major city's commuting area. Nonmetropolitan counties, combined with micropolitan ones, make up 97% of the country's landmass but home to only 14% of its population.
These areas have historically faced economic challenges, with low incomes and numerous attempts at economic development. While agriculture still plays a role, rural America's economy has diversified, with industries such as manufacturing, recreation, mining, and government sectors contributing significantly. Small family farms make up 85% of US farming operations but account for only 14% of farm sales.
Rural households now rely heavily on off-farm income, with 82% of farm household earnings coming from outside the farm. Employment growth in nonmetro US counties has lagged behind metropolitan areas, due to population decline, fewer employer businesses, and shifts in high-skilled and low-skilled job opportunities. Despite perceptions of rural poverty, the poverty gap between rural and urban areas has narrowed over the past six decades.
Economic development policies for rural areas can be categorized into place-based and people-based approaches. Place-based policies aim to attract businesses and entrepreneurs through infrastructure and financial incentives, while people-based policies focus on education and skill development. Remote work and infrastructure improvements have opened new economic opportunities for rural counties, but past efforts to support development have had mixed results.
Building stronger connections between nonmetropolitan areas and the broader US economy remains a key challenge.
Written by urgent.news from Conversable Economist's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
