falken that seems to be the same behavior like in this thread. If the distance to the grass is so far, the details will be reduced.
Raising the rendering quality increases the details displayed on distance.
Regarding your trees, you could try to set the transparent areas of the texture to green like your leaves. This way it should look better from the distance.
If you're using the 2.0 version I would recommend you to update to version 2.0.1.