Ken: I suppose small farm is a relative term, however it seems to me your main problem will be too much horse power to bale a bit of hay. And too much horse power will used too much fuel. 45 years ago I was baling (small bales) 600 tons of hay per year with 35 horse power on baler, plus two smaller tractors so I could rake and cart hay at same time as baling was being done. That 35 hp tractor was pulling baler with thrower and 20' wagons. That system took 15 men to keep it running at capacity, 60 to 100 tom per day.
Now if your looking at round baling 60 hp would be nice, you can get rid of 14 of the 15 men. In the 1970s I found my 656 diesel would bale as many round bales per day as my 1066. 656 burned 1 IMP gallon per hour baling, 1066 close to 6 gpm. 656 diesel is a very nice tractor, comfortable to drive, good dependable horse power, and not many hi tech gadgets to cause trouble. You go larger than 656 and your getting into a much heavier chassis, costs will increase.
I must confess, I did like 656 on the small square baler, much better than the old 300, although it never did bale anymore hay on a given day. You see,I was getting older and liked the 656 comfort. You get the same spilt in chassis size between 60-70 hp Deere, and enjoy the same fuel savings in doing so.
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