I went a slightly different road.
First i drew a 4096x4096 16 bit image with no alpha:
(edit* after all i tried with 1024x1024 image, and it is more than enough for now)
Then i removed transparency nodes from ground material, i decided i dont need them. I have only a diffuse shader on it.
Added and applied subsurf modifier, added vertex group.
After this i add the displacement modifier with the drawn image
And on top of this i added an other diplacement modifier with clouds texture.