I think he is talking about breaking up large square bales and re-baling them into small square bales. Small square bales will bring much more than large square bales to the horse people.
There are several commercial machines that do what you are trying to do. They cost fifty grand or more, plus you provide the small square baler to attach them too. A local man here made one years ago. He was re-baling round bales. He had the same clumping problem. He had a conveyor that the large bale set on The conveyor pushed the bale into a set of beaters, like a manure spreader. They hay dropped on to a wide chain conveyer and that took the hay up about four feet. Then droped it into another set of beaters. They turned at different speeds and that broke the clumps up. The they hay fell onto a final conveyor that end up droping the hay into the pickup of JD 336 square baler. He used it for many years. His health failed and the market changed. I think he sold it to someone back east.
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