This paper presents an overview of poverty in rural America, and examines the ways in which improved education could alleviate rural poverty. The question of education as a mechanism to reduce poverty includes issues of economic demand and supply. On the demand side, labor market projections indicate that the service sector will continue to grow, while manufacturing and trade sectors decline in relative importance. Most entry level positions will require at least a high school education, whereas management positions will require a college degree. On the supply side, there are few differences in quality between rural and urban schools, the major exception being narrower curricula in rural districts. However, school-based inputs are not the only determinants of educational attainment. Cultural inputs, related to home and community resources, are also important, and these resources are lacking in poor homes and poor communities. Suggested educational strategies to reduce poverty include dropout prevention programs; early identification and intervention for at-risk students; curricula and activities structured to promote student success; lower teacher-student ratios, particularly in the primary grades; greater use of educational technology in rural schools; provision of books and simple school supplies to poor households; and adult education. It is unlikely that land grant institutions will contribute to reducing rural poverty through applied educational research. This paper contains 16 references and tables about high school dropout percentages in north Florida counties and employment growth in the United States. (SV)