Here I have listed free favicons software with some observations on usability and practicality and cost (THEY ARE ALL FREE!).
Free Favicon Software - 3D Icon EDITor - Webmasterfree offers 3D Icon EDITor which is a FREEWARE application that lets you edit or create multiple Icon files. 3D Icon EDITor contains eight drawing tools, three brush sizes, grid layout, 256 color palette and the ability to zoom in and out. Icon EDITor supports icon sizes up to 32x32.
Free Favicon Software - Icon Suite - Icon Suite is a fully featured FREEWARE Icon Editor capable of creating Icon(.ico) and Cursor(.cur) files containing icons of different sizes (16x16, 32x32, 48x48) and color depths (2, 16, 256, True Color). The FREEWARE Icon Suite has additional tools include importing a picture of any size and exporting as a bitmap.
Free Favicon Software - Irfan View 32 for Windows - IrfanView is a very fast and also (importantly) FREEWARE (for non-commercial use) 32-Bit graphics viewer for Windows. Irfanview is very capable and can easily resize and save images in almost any format into favicon files.
Free Favicon Software - THE GIMP Freeware Graphics Software - The GIMP is the GNU Image Manipulation Program. It is a freely distributed piece of free software for such tasks as photo retouching, image composition and image authoring. It will create and save favicon files. It works on many operating systems, in many languages. THE GIMP graphics software is available free for UNIX, LINUX, WINDOWS and MACINTOSH (MAC).
Free Graphics Software - Free Graphics Software - This page list various free graphic programs that will mostly all manage to create favicons as well as other graphics files. The software is freeware or open source.