According to the latest data from the US Drought Monitor, all of New Jersey is experiencing at minimum, moderate drought conditions, with all of Monmouth County experiencing severe drought and much of Ocean County experiencing extreme drought.
NJ.com reports that the distinction of extreme drought is quite rare in the state, typically occurring once every 20 to 50 years. News 12 NJ reports that the last time the state saw this level of drought was in October 2002. Historically, this level of drought has led to widespread crop loss, struggling Christmas tree farms, wildlife disease outbreak, wells drying up and subsequently deeper wells being dug.
For tips on conserving water and preventing wildfire, see this previous drought update.