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Fences are not necessary at all, imo. Purely for looks and keeping easier track of them, plus keeping them from wandering into your fields and getting in your way physically. :)
I've also tried to use trees as a fence once, it took way too long and too much effort to prepare. I wouldn't recommend it. If you do ever attempt it, I'd say clear away the grown trees and leave the tree stumps rather than try to get a tap farm going with your tree-fence.
The fences are a pain, though. The detoriation rate is annoying. I finally upgraded to hardwood fences which are apparently the strongest and haven't had to fix them yet.