Did you guys go to the site with the research? or read canoetrpr post?
If you are seeing 3" of waste all the way around your bales, I think #1 you must be using string instead of net wrap #2 your bales are not tight enough when made.
I have stored dry bales outside for 30 years here in NY. They get LOTS of rain, summer & fall & lots of snow/freezing/thawing in the winter.
They are net wrapped, tight bales, on bare ground. I have to agree with the study reported. Our biggest loss is on the bottom because it is a frozen chunck - but left aside, it eventually thaws and the cattle eat it.
Yes, the outside edge (maybe 1/2" at most) gets "spoiled" and yes, the cattle eat it too. But, the inside of the bale is just about the same as when it was baled.
Garbage in - garbage out.
Big dry bales actually need to be as dry or slightly dryer when baled than small square bales, if you don't want dusty hay.
But, I do totally agree that if you had tie rails or somethiing to get your bales up off the ground, that it would help. Pallets definately will help, but they deteriorate and become too dangerous for the health of your tires. (and health of your cattle, because those nails do sometimes stick to the frozen bottoms of the bales).
Those "bonnets" look interesting, but again, with the little hay loss I see, and the struggle to get the tarp off the frozen/snow covered bales is not worth it. We used to stack the bales in a pyramid and tarp it. I never worked so hard trying to feed hay in my life. Never, never again.