Well, FB, now that you have revealed the extent of your involvement, you have likely exposed the real issue. No doubt the local know-it-alls are sure you are baling 20K+ bales and getting $6 each for them with no cost of inputs. They see you making this $120K for free, and figure they have a right to its well. Which they kind of do, legally, if not conventionally. Heck, they probably have it figured out how you are getting paid to harvest the hay and sell it for your own profit, and get the equipment for free, too!
IF the state owns this property, as it appears is so, and it has a process to get the hay, you would need to follow that process. Otherwise, you have explained the situation to the other guy, told him how things used to work, but he has no binding reason to follow that convention. HE truly is first come-first bale. As some have suggested, the more the state gets involved, the less likely anyone can afford to do this anymore.
I'd suggest you do what you can to protect what you have harvested in the past by following whatever rules there may be. You'll have to be first to cut if there is no other rule. Talk to the other guy, it may make it easier to understand where he is coming from and how much of a threat he really is. He likely will get some of "your" land, but also isn't likely to keep it for long once he finds out how much work it is.
On a (hopefully) unrelated note, are you familiar with the Kettner family near there? They are shirt-tail relatives of my wife.
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