The Illinois Institute for Rural Affairs (IIRA) started at Western Illinois University in 1989. An outgrowth of the population declines and economic stagnation during the early 1980s, it provides a comprehensive program of applied research, technical assistance, policy evaluation, and educational outreach to community leaders and residents in rural Illinois. Based on the premise that a holistic approach is required for successful community development, IIRA focuses on six main issues; economic development, education, health care, public transportation, public management, and value-added agriculture. Following an introduction and brief sections on strategic planning efforts, personnel, funding, structure, and scope of activities, the bulk of this annual report is organized around IIRA's four main goals: 1) develop rural public policy, which includes value-added agricultural businesses, a strategic plan for rural development in Illinois, and an annual report on the status of rural Illinois; 2) advance the state of knowledge on rural issues, which encompasses research on economic development, rural health, social and demographic concerns, and education; 3) provide high quality training, including conferences, training seminars, and instructional activities; and 4) provide technical assistance to economic development agencies. An appendix lists activities performed by institute personnel, including books, book chapters, journal articles, project reports, IIRA Rural Research Reports, Illinois Rural Life Panel, professional and trade publications, book reviews, conference presentations, other presentations, training and technical assistance programs, other off-campus professional activities, and grants. (TD)