Planalytics AgriBusiness Insights June 24 2016

Issued: June 24, 2016

Monitoring Changes in Drought Status in the Context of Crop Conditions… Telling the Rest of the Story. The U.S. Drought Monitor is produced through a

partnership between the National Drought Mitigation Center at the University of NebraskaLincoln, the United States Department of Agriculture, and the National Oceanic and Atmospheric Administration. Every Thursday this team issues a new Drought Monitor map indicating the current drought status across the country using a 5-level intensity scale ranging from “D-0: Abnormally Dry” to “D-4: Exceptional Drought.” Each week the report also includes maps indicating

U.S. Drought Monitor Class Change June 21 Compared to May 24

changes in Drought Intensity Status over the previous week, month, quarter or year. We have found these change maps to be particularly useful in alerting our clients to significant trends in the impact of weather on growing conditions. Change maps, like the drought monitor, only tell part of the story however since they don’t tell us anything about the effects of

moisture loss on growing conditions. That is when we turn our sights to our satellite imagery, courtesy of our partners at TerraMetrics Agriculture, Inc. and the University of Kansas. VEGETATION CONDITION INDEX Period 25: June 7 – June 20, 2016

The Vegetation Condition Index map is based on the same satellite-derived NDVI data that we utilize in our GreenReport and Crop Yield Forecasts in

combination with an additional data band that serves as a proxy for surface temperature. This gives us a more comprehensive indicator of vegetation stress that is locally derived; each pixel in the VCI map represents 1km , or approximately 250 acres. Monitoring changes in vegetation conditions, whether visually on the ground or using satellite images like this one, requires a trained eye. You don’t need to be an expert, however to see some similarities between our VCI map and the latest Drought Monitor Change map. © 2016 Planalytics, Inc. All Rights Reserved. Proprietary and Confidential.

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