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I need to run a electrical cable for 340' with a 20a breaker, what size or awg cable do I need

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Your application would require 6-3 G AWG Cu and remote grounding at the distant breaker panel.  You must not attempt to substitute the grounding rods for a neutral.  NEC requires that you run this line into a breaker panel, not merely terminate in a junction box with outlets.  If the cable will be on the ground or buried, you must use UF line which is rated for direct burial.

Although 12-3 AWG  Cu cable is rated for 20 amperes in runs up to 50', you are going much farther than that and will need the larger conductor to avoid line voltage drop. 

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excellent!

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