Drought index can be used to implement an early warning system for drought and to operate a drought monitoring service. In this study, an approach was examined to determine agricultural drought index (ADI) at high spatial resolution, e.g., 270 m. The value of ADI was calculated based on soil water balance between supply and demand of water. Water supply is calculated by the cumulative effective precipitation with the application of the weight to the precipitation from two months ago. Water demand is derived from the actual evapotranspiration, which was calculated applying a crop coefficient to the reference evapotranspiration. The amount of surface runoff on a given soil type was also used to calculate soil residual moisture. Presence of drought was determined based on the probability distribution in the given area. In order to assess the reliability of this index, the amount of residual moisture, which represents severity of drought, was compared with measurements of soil moisture at three experimental between July 2012 and December 2013. As a result, the ADI had greater correlation with measured soil moisture compared with the standardized precipitation index, which suggested that the ADI would be useful for drought warning services.