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The Grammy nominating committee would not consider Merle Haggard's Bluegrass Sessions for a nomination in the Bluegrass category because they felt it wasn't Bluegrass.
Let's look at the facts. It was produced by McCoury (as in Del) Music, who decided to call it Bluegrass. It features Bluegrass musicians and it was recorded at Ricky Skaggs place. That sounds a lot like Bluegrass to me. Also, if you go to any Bluegrass fstival you will see that the Bluegrass community casts a pretty wide net as to musical styles. I definitely think there is room in that net for this album.
Talk about hypocricy! If you can't call Haggard's album Bluegrass then please don't call Faith Hill or Shania Twain country.