2004 Annual Report 4.What were the most significant accomplishments this past year? D. Progress Report. This report serves to document research that was conducted under a Specific Cooperative Agreement between ARS and Willoway Nurseries, Inc. in Avon, OH. Additional details of the research can be found in the report for the parent CRIS 3607-21620-006-00D Biological, Microclimate, and Transport Processes Affecting Pest Control Application Technology. In nursery production, knowledge of water quality and quantity is needed to improve application efficiency and efficacy due to irrigation and rainfall following pesticide spray application as it relates to potential for soil and groundwater contamination. A multi-purpose experimental pot-in-pot production system has been established in a plot in north Ohio. The experimental system was successfully tested to monitor levels of nutrient and pesticide residues in leachate with various irrigation schedules and pesticide spray application methods. The system will help identify application methods to produce healthy nursery and horticultural crops with minimal water consumption and nutrient and pesticide leaching. Growers have used the 2003-2004 research outputs to improve their production management with less irrigation water and fertilizer utilization in 2004 growing season. The nursery industry and scientific collaborators strongly support to expand the research activities with the experimental system to increase water, pesticide and fertilizer utilization efficiency under the wide variety of tree canopy structure, growing condition, and marketing requirement.