Rural area means any area, as confirmed by the most recent decennial Census of the United States (decennial Census), which is not located within:
(1) A city, town, or incorporated area that has a population of greater than 20,000 inhabitants; or
(2) An urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 inhabitants, and which excludes certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I). For purposes of the definition of rural area, an urbanized area means a densely populated territory as defined in the most recent decennial Census.