What is it?

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Definately an animal growth of some kind. When I looked at it initially I thought it was a fungus. Yet on second thought defenately created by a bug or bugs.
 
I think quads has it nailed. Perhaps this is why we've had some of the pines dieing over the last few years. It is a good thing then that we got them cut off. We ended up with around 600 ton of wood chips from these pines and I'll bet there are another 100 ton of junk laying around from the work. Lots of branches fell off while skidding the logs. I suspect we'll have a few big fires while cleaning up the mess.
 
I think one of the other signs of pine rust is mold/mildew on white pine. We have that here and I believe you mentioned seeing it on your trees too.
 
quads, we did have white mold on several of the white pines. I think we cut all the bad ones and hopefully the few we saved will be okay.
 
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