Small to mid-size farms across America now face declining profits and a higher volume of agricultural residuals due to increasingly erratic weather patterns. Farmers are seeking innovative ways to create new revenue streams and adapt to a changing landscape. Bragdon Farms Phase I SBIR research is committed to creating a hay fuel log and scalable business model that can help ameliorate these issues. Developed as an alternate heating source for use in existing stoves and boilers, the hay fuel log will be made from waste hay which would otherwise have little or no market demand but which routinely accounts for 20-25% of a hay farmers annual harvest. Proposed research will determine the hay fuel log formula and manufacturing specifications that are optimal for use in existing stoves and boilers. A value chain strategy will be developed, from supply side to demand side, for a regional business model that can be replicated in rural communities throughout the U.S. The commercialization of hay fuel logs will create a new market for waste hay and also stimulate rural economies by creating new jobs, restoring defunct manufacturing space, and adding to the tax base of local municipalities. The availability of a locally-sourced and manufactured renewable energy fuel will help rural communities become economically independent and more energy independent while contributing to environmental sustainability.