Drought is a significant problem for Portugal. Droughts have become more frequent and severe since the 1980s, seriously affecting agricultural production. A drought early warning system is being developed. In this regard, various drought indices and satellite data are being studied. Such a system will help better manage droughts and alleviate economic and social impacts. Cooperation between governmental and associate institutions is a must for such a system to succeed and help concerned farmers and industries.

acknowledgments We are grateful to the Ministry for Agriculture, Rural Development and Fisheries, Institute of Hydraulics, Rural Engineering and Environment (IHERA), Office of Planning and Agro-Food Policy (GPPAA), Directorate General for Forests (DGF), and Institute of Financing and Support to Agriculture and Fisheries Development (IFADAP) for supplying relevant information incorporated in this chapter. We also thank Alvaro Silva and Sofia Moita of the Climate and Environment Department of Portuguese Meteorological Institute for providing GIS maps and to Mario Pereira for his suggestions in reviewing the text.

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