A tricolor beech (Fagus sylvatica 'Purpurea Tricolor') with curling, drying leaves and "fungus" on the trunk in a "normal" New York season is likely suffering from multiple interacting stresses.
Lichens are not pathogens. They grow on slow-growing bark in clean air. Their presence indicates the tree's bark isn't expanding rapidly—often a sign of slow growth due to stress.
Tricolor beech is a stunning but somewhat finicky tree. Consistent moisture and partial shade are its keys to success.
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