I came up with this beard a few years ago, when I found myself needing a beard for my son on Christmas Eve :-) He needed it for dressing up as Santa and handing out all the presents. It's made using a wonderful technique called loop stitch and pretty simple to knit.
The pattern I made then is found here. However, now I've learnt a lot more techniques and become somewhat more of a knitting perfectionist, so I've made a new pattern - Santa Beard version 2.0 :-D
This version has a photo tutorial of the loop stitch and also the pattern itself, and I've improved the loop stitch (IMHO ;-)) to make it more secure.
Download the pattern pdf by clicking on the image below.