U.S. Drought Monitor
A weekly tool monitoring drought location and severity across the U.S., produced by the NDMC, USDA, and NOAA. It offers essential data for assessing agricultural risk and water stress.
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OVERVIEW
The U.S. Drought Monitor (USDM) is a weekly map and data tool that tracks the location and intensity of drought across the United States and its territories. It provides a standardised assessment of moisture conditions by categorising drought into five levels of severity, ranging from Abnormally Dry (D0) to Exceptional Drought (D4). For finance professionals, this tool is a critical resource for assessing physical climate risks and identifying potential disruptions to supply chains and agricultural output.
Organisation behind the tool
The USDM is produced through a partnership between the National Drought Mitigation Center (NDMC) at the University of Nebraska-Lincoln, the United States Department of Agriculture (USDA), and the National Oceanic and Atmospheric Administration (NOAA).
What the tool does
- Updates weekly maps (released every Thursday) showing drought intensity across the continental U.S., Alaska, Hawaii, Puerto Rico, and Pacific Islands.
- Provides a data archive and time series for historical drought comparison and trend analysis.
- Offers downloadable GIS data, metadata, and high-resolution maps for technical integration.
- Features specific data tables and graphs for population statistics, drought severity, and coverage indices.
- Includes a Condition Monitoring Observer Report (CMOR) system for ground-level impact verification.
Target audience
The primary users include agricultural producers, meteorologists, and policymakers. Secondary audiences include researchers, infrastructure planners, and financial analysts monitoring climate-related physical risks.
Relevance to finance professionals
- Risk assessment – Evaluation of physical risk exposure for assets and operations located in regions prone to water scarcity and wildfires.
- ESG analysis – Provision of objective environmental metrics for reporting on climate adaptation and geographical water stress.
- Market/commodity insights – Assessment of potential impacts on agricultural yields, livestock productivity, and energy production (specifically hydropower).
- Investment context – Monitoring long-term environmental trends to inform real estate valuation, infrastructure longevity, and insurance underwriting.
