No they don't, and it svcks. MGE can't render distant billboards, and for some reason it has trouble making a texture for them and they appear brown. I've gone back to not using distant land and just using FPS Optimizer's 2x view distance.
Have you talked with Timeslip about this? Is it something that can't be fixed or might we expect some kind of fix in the future?
I've been trying to think of various ways to make this work with MGE.
Thinking the brown textures could be the result of something simple, like missing mipmap levels, I went ahead and generated the statics without skipping any mipmap levels. However, that didn't get rid of the ugly brown textures.
One possible thought was to generate some other trees that look very similar to the billboard trees from a distance. Those trees could be placed directly on top of the billboard trees and disabled. Since MGE generates statics for everything, whether it is enabled or disabled, we would get statics for the disabled trees. We could then create a custom MGE statics file that told MGE not to include the billboard ones as statics, but to include the MGE compatible disabled ones.
# trees with bollboards
ex_tree_bc_01=0
# disabled trees without billboards
ex_tree_bc_01_disabled=1