Drought affects societies world-wide in many different ways. It is a natural hazard that is complex and not well understood and as a result, its impacts are often poorly documented. The purpose of this research is to quantify (in dollars) the impacts of drought on Kentucky's beef and forage (hay) production. Observations suggest that the most important droughts in Kentucky occurred in 1930–31, 1940–42, 1952–55, 1987–88, 1999–2000 and 2007. The total state revenue for these commodities were analyzed during these severe drought years and non-drought years. The research estimated revenue deficit from these severe droughts in Kentucky for these (beef and hay) agricultural commodities. This study is important to the general public as well as planners and policy makers. Proper documentation of drought impacts should help identify drought vulnerabilities and result in better risk management and mitigation.