The folks at Wee Folk Art give us this too cute for words felt tree forest complete with gnomes.

Materials:
1/4″ dowel rod: (6″ tall, 4″ medium, and 2″ bush.)
base: approximately 1 1/2″ sliced branch, 3/4″ tall NOTE: If you do not have branches available, you can cut bases out of wood. You could also make them out of clay OR I was even thinking you could use Tinker Toys. They have different sized sticks and the round wooden connectors could work as a base.
wool felt – I used 3 different colors of green for each tree
floss – white (snow) cranberry (berries)
brown yarn – for wrapping trunk
yarn needle
crafting glue
tools for cutting branches and dowel rods. Drill for drilling a hole in the base.
optional – fusible web – I cut my boughs out of 1 piece of felt. If you would like the boughs to stick out farther, plan on cutting 2 pieces of felt. You might want to iron them together with a layer of fusible web between them to make them a little stiffer.