Is that snow on the ground! In any case, your palm is being stunted by the Winter cold. The pygmy date is one of the more tropical species of Phoenix (date) palms--other species (P. canariensis for example) show greater cold tolerance. Your palm would soon grow out of this stunted growth and revert to a normal growth rate/pattern BUT as you say, it will go through another setback with the coming winter. Frankly, I would grow it as a containerized palm and just Winter protect it somewhere (house or garage). The condition you described happened last year to my pygmy date. It suffered two Winters ago as a containerized palm in the garage. It showed stunted, slow abnormal growth last Summer. This Spring it grew out of it and grew like crazy and a few weeks ago it flowered. In its place I would suggest you plant a cold hardier palm. Here are some suggestions: Trachycarpus (Windmill palms), Sabal louisiana, Butia capitata (Pindo palm), Rhaphidophyllum (Needle palms), or Chamaerops humilis (Mediterranean fan).

donvon, where in AL are you located. I'm in Enterprise.

I highly recommend a mule palm for you. It is rare (extremely rare for AL), and it has a very tropical appearance to be so cold hardy. It is a cross between a Pindo Palm and a Queen Palm. These plants, once established, can take temps to 20F with no damage. They supposedly can survive temps down to below 15F...but I don't know from my own experience as we haven't had temps that low here recently.

Anyways, check this thread for a pic of my largest one...

http://forums.gardenweb.com/forums/load/palms/msg0804003623971.html?3

...You can get them from a few places on the Internet, but I highly recommend talking to Frank at Moultrie Palms in St Augustine FL.

I grow several hardy palms outside in zone 4, but I've never wanted to plant my Pygmy Date Palm outside. I've had it for about 20 years and is developing a nice trunk. Mine does great in a large 15 gallon pot on my deck. It likes morning sun and shade from the hot western sun. I wonder if it would do better in filtered sun. I'm not sure what kind of soil you have, but maybe the soil composition could be the problem. I don't think they do so well in clay-like soil. Good luck!

Kevin

Mule palms all the way! If my pindo palm makes it maybe Ill get one. They are really beautiful palms and much prettier and more cold tollerant than pygmy palms. I also think you should dig up your pygmy palm and get a date palm instead for 3 reasons.
1. They are much nicer looking and will fill up the area quicker and nicer.
2. They are quite a bit more cold tolerant, true date palms are even more cold tolerant that canary island date palms, but both can handle freezes and brief drops to 20.
3. They actually make edible dates.

Other nice palms are queen palms, pindo palms, sabals (they look great in groups) windmill palms (also look great in groups) saw palmettos (make great bush palms), needle palms (100% bullet proof in a zone 8, and searve as great fence which would make anyone trying to break in regret it), Meddeterainean fan palms (great small palms but will eventuallyget very large), and washingtionias which will eventually get huge!

Good luck and post pics of how your pygmy does!

>>>needle palms (100% bullet proof in a zone 8, and searve as great fence which would make anyone trying to break in regret it

lol...for sure

As for the CIDP vs True Date cold tolerance...I have heard other people say that true date palms are more cold tolerant. For whatever reason that has not been my experience. My CIDPs are more cold tolerant. Once it got to 20F, Medjools had severe leaf burn...CIDPs had no damage at all. They were of comparible size, although the CIDPs had not been in the ground as long as long as the Medjools.