2006 Annual Report 4d.Progress report. This report serves to document research progress under a Cooperative Agreement 408-1935-186 with the University of Vermont. This agreement services the Sustainable Agriculture Research and Education grant no. LNE 03-179, “On-farm production of mycorrhizal fungus inocula,” awarded to D. Douds in 2003. Additional details of this research can be found in the report for the parent CRIS 1935-12000-010-00D Development of efficient and practical methods for producing arbuscular mycorrhizal fungi. A core group of 6 farmers participates in a pilot project for the transfer of technology for the on-farm production and utilization of AM fungus inoculum. Inoculum was successfully produced at each farm in 2003 through 2005. The inoculum production systems are being replicated in the current growing season. Inoculum produced in 2004 was used in vegetable production systems in 2005 with success for the production of carrots, potatoes, and strawberries. NP 202 Action Plan component V Productive and Sustainable Soil Management Systems, Performance Measures in the ARS Strategic Plan, 5.2.2 and 5.4.2).