This digest examines the rural teacher shortage from a policy perspective and suggests strategies to address the problem. The rural teacher recruitment and retention problem varies across states. An adequate number of teachers are trained each year nationwide, but the problem is with distribution. Recent research on rural teacher recruitment and retention is thin and suggests that teachers leave rural areas because of geographic isolation, weather, distance from large communities and family, and inadequate shopping. Teachers stay because of interpersonal connections and satisfaction with the rural lifestyle. Rural administrators must target candidates with rural backgrounds or with personal characteristics or educational experiences that predispose them to live in rural areas. Most rural teachers were raised close to where they now teach. Various "grow-your-own" strategies offer incentives to local residents to become teachers. Colleges must take a greater role in recruiting students with the potential to become successful rural teachers. A rural teacher's involvement in community educational and cultural programs influences the decision to stay or leave; therefore, retention requires a coordinated school-community effort. State programs for recruiting and retaining teachers vary widely and include equalized teacher salaries, teacher supply-and-demand analyses by subject area and community, teacher placement clearinghouses, scholarships and loans, advertising in other targeted states, forgiving student loans for teacher service, and related career activities for secondary students. (Contains 15 references.) (SV)