The report of the 25-member National Advisory Council on Rural Development, appointed by the Secretary of Agriculture, defines rural needs and sets forth strategies for rural development in the 1980's. A review of the decade between 1970 and 1980 discusses rapid economic growth of rural areas, social progress, and changes in public service, and provides tables showing changes in population concentrations (1970-1980), Americans' residential preferences (1948-1978), and structure of nonmetropolitan employment (1973-1981). Rural needs identified by a public participation process are grouped under improvements in facilities and services including education, local government, housing, and employment and income. The Reagan Administration's governing philosophy, the New Federalism, is outlined. The Administration's strategy is described, including the Federal-State Block Grant Program to improve facilities and services; efforts to reduce reporting and regulatory requirements for rural development programs; the proposed Technical Rural Assistance Information Network, Rural Resources Guide, and rural data collection improvements; rural housing block grants; proposed rural enterprise zones, reform and expansion of trade to develop foreign markets for rural products; and efforts to increase availability of credit for rural development. An analysis of the fiscal year 1983 rural development budget is provided. (MH)