High moisture round bales that are ensilaged are usually called balage. They are usually wrapped in plastic to seal them so the ensilage process can happen. Haylage is usually what you would chop with a forage harvester. It is a short chopped stem. It is usually in bags, bunker silos, or upright silos.
As for whether you would have trouble with feeding balage to horses. I would say you would have to be real careful. Most balage is higher in protein (15-25%) and can have molds in it if not made at the correct moisture. It is actually the dryer baled hay that will cause the most problems. If it is under 35% moisture it may not have enough moisture to properly ensilage. Then mold can form. I tried doing it one year and the hay got a little too dry and I had a lot of white mold. It did not seem to hurt the cattle but I sure would not have wanted to feed it to horses. So I would not feel confortable feeding it to horses.
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