This article describes the Australian Agricultural Drought Indicators (AADI), a system for integrating several different types of data and modeling to predict outcomes of drought. Meteorological data is one component, along with models predicting crop and pasture yield. Of particular interest is the outcome-based forecast of farm profits. While a companion article focuses on forecast skill of AADI, this one provides an overview of the approach and how closely the component indicators are associated with key agricultural and economic outcomes. It is validated in contrast with rainfall percentiles.

The overview of AADI seems thorough and reasonably comprehensive, and the presentation of results is straightforward (although the figure numbering needs to be checked).

A key contribution of AADI is that by incorporating commodity prices along with climate data, it can help anticipate farmers’ increased need for assistance. It goes beyond crop and pasture yield predictions to anticipating what kind of experience farmers are having. This approach is highly practical and potentially more relevant than indicators based only on rainfall or combinations of biophysical data.  

Although the authors say it is beyond the scope of this paper, the connection they found with broader demographic and socioeconomic outcomes is quite interesting and is well worth pursuing.

On the whole, this article is well-organized and clearly describes what may be a valuable advancement in combining drought and climate data with models of farm productivity and commodity prices to predict farm income, which has direct bearing on farmers’ need for assistance.

Minor:

On line 100, capitalize “Indicators” at the start of the sentence.

On lines 225 and 254, there are references to Figure 9 but I do not see a Figure 9. Should this be Figure 4?

On Tables 2 and 3, I suggest adding “with drought indicators” after “Correlation”

Line 286, there is a reference to Fig. 8, which I do not find in the manuscript.

Please check all Figure numbers.

The authors describe a new system of indicators, Australian Drought Indicators, AADI, which comprises several data in order to monitor and forecast draught. One of the important benefits of this system is that of a predictor of drought induced financial stress and flow-on socio-economic impacts. The study also found some correlations between the indicators and demographic outcomes, linking drought in the case of Australia to lower birth rates, higher mortality and negative net migration  Its outcomes apply for more detailed future research of the impacts of drought on socio-economic aspects. The article is well articulated, the method of analysis is clearly presented, the results of simulations and statistical correlations are presented in  good images and detailed tables, the written English language is excellent.

Row 100: at the beginning of the phrase Indicators instead of indicators.

Row 144: SIMUlator instead of sIMUlator.