Answer: Congratulations! Your palm is about to produce a flower. It won't be very attractive - it will look a bit like the tassel on a corn stalk - but it's the palms way of reproducing. As the flower stalk matures, seed-bearing cones will form. You can collect the seeds when the cones release them and start new sago palm trees, or you can simply cut off the flowering stalk and dispose of it.
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