Hey there i have come up with a technique that works well for me. I use drywall compound or spackle (the stuff you use to cover holes in walls, u can pick it up at any home improvement store near the sheetrock section)
Okay so i spread the sheetrock compound over my base with a knife or spatula. This stuff is really gooey and sticks to your fingers etc so what i do is sift some dirt from my backyard, remeber sift dry dirt, and keep the consistency finer than sand.
So i have the dirt in a bowl and i sprinkle it over my wet spackle, the dirt allows a non-stick barrier between the wet spackle and my fingers. Now i shape the terrain and if some spackle shows through just sprinkle more dirt ontop. Whats cool about this is that you can take the tires or tracks from vehicles or boots from figures and press in that detail into the groundwork without getting your figure dirty. Also when it dries it gives a nice realistic surface for dirt.
Sometimes with spackle you may make a really thick layer and when it dries it contracts and sometimes forms cracks. U may respackle and dust with dirt in a thin layer to cover it, or u can just take some 50/50 water and white glue and add dirt over the cracks. Generally you should seal down the dirt with the 50/50 glue by spraying it over your base after it is dry. After that you may start painting and drybrushing your groundwork.
TIP: Sheetrock compound is dilutable by water so when your groundwork is dry and there is excess or jagged highspots you may take a damp rag and rub it off gently.
Hope this helps,
Ian