I use the peat starters and plant them as soon as I see roots emerging from the bottom/sides. Remove any netting from the starter trying not to damage any roots. I found out last yr that the netting doesnt really break down and SEVERLY restricts root growth.Mine looked just like yours, I wet the stem,sprinkled with rooting powder, and burried it to within 1/2" of top of plant. Its been in soil for a week now and doing great.