Rural Area Revitalization Act of 1987

Rural Area Revitalization Act of 1987 - Amends the Food Security Act of 1985 to authorize FY 1988 through 1992 appropriations for Rural Development Loan Fund intermediate borrowers.

Authorizes the Secretary of Agriculture to make 1988 through 1992 grants for: (1) rural business, employment, and infrastructure development; and (2) stimulation of growth and diversification in rural communities affected by chronic underemployment in basic economic sectors, such as agriculture.

Limits: (1) Federal cost sharing to 75 percent, unless waived by the Secretary; and (2) grant eligibility to projects serving communities with populations of not more than 20,000 people.

Amends the Consolidated Farm and Rural Development Act to authorize grants for rural drinking water projects.

Directs the Secretary to establish an office in the Farmers Home Administration of the Department of Agriculture whose primary purpose shall be to encourage different approaches to economic and community development in rural areas.