An updated federal report shows that more than one-third of Indiana is still in at least extreme drought even though recent rainfall has improved conditions for much of the state.The new U.S. Drought Monitor report released today says about 11 percent of Indiana is in the worst category with exceptional drought. That designation covers much of the state's southwestern corner from around Terre Haute to north of Evansville.The federal report classifies 37 percent of Indiana as in extreme or exceptional drought, with all that area in the state's southern half. Two weeks ago, nearly 69 percent of the state was listed in extreme or exceptional drought.The report says 98 percent of Indiana is in at least moderate drought.Kentucky has also been hard hit by drought. The U.S. Department of Agriculture has declared a drought disaster in all but four of the commonwealth’s 120 counties.