I would have to agree with Mornie Alantie and lindil. Radagast had gone native... concentrating on the animals of Middle Earth. Perhaps it was in his nature being a maiar of Yavanna (if I'm not mistaken).
But it couold be argued that for the good of Middle Earth in general, he could have helped a great deal.
I found it odd that he didn't know that Saruman was destroying the surrounding forests for his purpose. Although perhaps at that time Radagast hadn't been aware of the imbalance(?) of nature in that area.
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