Understanding climatic impacts is important if we are to comprehend the relationship between climate and society. Weather phenomena can have environmental, economical, and social impacts. Drought is the natural hazard that affects people the most. It is also the most complex and least understood. There is no one universally accepted definition for drought which makes its examination difficult. Droughts duration is also difficult to determine because it has no clearly defined onset and end. Also, drought varies both geographically and temporally making uniform drought monitoring difficult. Since drought is difficult to monitor and access, drought impacts are often poorly documented. The purpose of this research was to quantify (in dollars) the impacts of drought on Kentuckys agriculture. Drought has been recorded historically in Kentucky since the late 1800s. According to the Kentucky Climate Center, the most significant drought years occurred in 1930-31, 1940-42, and 1952-55. Analyses of these years are included as well as the most recent significant drought years in 1987-88, 1999-2000 and 2007.