Create a new
file. Fill the background with a shade of brown.

Select foreground and background color as shown
in the image below. From "Filter" menu select "Render>>Fibers".
Apply settings as shown.
From "Filter" menu select "Stylize>>Wind". Apply
settings as shown.

Rotate the layer 90° and press Ctrl+F to reapply the filter.

Create
some rough circular selection using lasso tool. For multiple selections
hold on "Shift" key.
Press Q to enable quick mask. From "Filter" menu
select "Artistic>>Smudge Stick". Apply settings as shown.
Create a new layer and fill it with dark brown
color.
Ctrl+Click the layer thumbnail to get the
selection. From select menu select modify>>contract. Contract the
selection by 5 pixels. Create a new layer and fill it with another
shade of brown.

Select and merge both the distorted layers. Select
Smudge tool in "darken" mode.

Apply this tool on the edges to create fur effect.
Duplicate the layer. From "Filter" menu
select "Render>>Fibers". Apply settings as shown.
Change the layer mode to "Soft Light".
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