Broadleaf evergreens, such as magnolias, do not keep their leaves forever, they just always HAVE green leaves. I forget the exact timing for the cycle, but I think individual magnolia leaves last 2-3 years, and then die and are replaced with new leaves. This is normal for the tree. Conifers do the same thing, but it's not usually as noticeable when some of the needles turn yellow and fall off.

I don't blame you for being concerned, I think there are few trees as majestic as the Southern Magnolia. I had one planted on my front lawn here in SW Florida 13 months ago, - just outside my screened lanai, A 20 ft tall gem that is now loaded with foot wide, intensely aromatic white blossoms that draw the attention of everyone who walks by. IMHO, well worth the effort and expense. It too has a mild case of fungus on the very bottom leaves, something I plan to eliminate soon by giving it a single spraying of copper sulfate, ( on both sides of the leaves as well as the trunk ). Lowes, Home Depot and Walmart all sell the plastic jugs of sulfate as well as the spray bottle that screws onto the garden hose. In your case three sprayings may be needed, each one two weeks apart. My best advice, not an expert, - perhaps other contributors may have a different solution. Good luck ! This post was edited by jofus on Sun, Jul 13, 14 at 8:35

That IS scale - not nests at all!! And the ants are there in response to the scale. They collect the honeydew secreted by the scale (or other sucking insects). Scale is a serious insect problem and should be treated ASAP. What is showing in the photos is an armored scale so regular insecticides will have no real impact. They cannot penetrate the hardy, bony covering. Armored scale can only be successfully treated with insecticide when in the larval or crawler stage.....too late now to have any impact. The tree is small enough that the scale can be picked off. You do not need to treat for the ants - once the scale is gone, they will depart also and they do no harm to the plant themselves. I would also NOT advocate using any mixed use product. A) a spray will have minimal effect on the scale; B) if there is no fungal problem, you need no fungicide. And C) there is plenty of residual fert in the container potting soil to hold the tree until fall planting time. Just keep an eye on it to make sure you have eliminated all the scale and that it receives sufficient water.

I feel your pain Glenn ! We both know why the magnolia blossom is the state flower of both Louisiana and Mississippi don't we ? :o) I bought this tree ( at around 16 ft tall ) 5 yrs ago this month, (not 9 1/2 yrs as stated above ), and had it delivered & planted by 2 guys using their truck's big crane,..the root ball alone was humongous ! I originally wanted a Bracken's Brown Beauty because IMHO, it was the most beautiful southern magnolia tree out there, mainly because it had denser and more symetrical foliage ! But this was the only one available in that size, at that particular time. Cost a bundle for the tree plus planting, so after it was in the ground, was a bit self critical for not waiting around for a BBB to show up. However, a year or so later I read an article that the Edith Bogue trees, although initially not as dense with branches/ leaves, would start to get denser as it grew. Sure enough, it is now, ( at over 21 ft tall ), just as compact, robust and symetrical looking as the best Bracken's Brown Beauty I have ever seen ! Minimum care required, just 7, 8 handfuls of 6 - 6 - 6 fertilizer 3 X a year & occasional watering whenever Mother Nature gets lazy. Couldn't be more satisfied, - being where it is, I see it all the time. Especially whenever I get into or out of my truck at this time of year, - just cannot help but smile. LOL