OP Yes you can do it, but it will be a slow operation. Please do a search on my user name and read my posts. I posted my trials and successes in doing what you want to do. I have been doing exactly what you want for 3 years now and this year I actually may make a profit. First look into the schedule F for the tax advantage - you will be surprised. Also check you local land use and see if you will qualify with an agg exemption.
I am baling with a small inline baler Hesston 4550 with a 26.5 pto hp tractor(Bobcat CT 235). If I keep the windrows light I can fly through the field with no issue. a heavy windrow will bog me down, but as I have a hydrostatic drive, I just slow way down. I cut with a 9' IH 1300 sickle mower (you can run a 7' also). There are also some small drum mowers out there. My rake is a Ford 503 side deliver model, but there are several rotarys you can run. Keep looking - it can be done
Bottom line - check what your 3pt can lift to figure out your rake, and what can your tractor safely tow? I am right at the limits on towing, but so far so good.
Yes SFI has some smaller balers, but you get small bales that are not standard size. Massy currently has a round baler that is rated at 30 hp, but if you can tow it you could run it. Get good equipment and upgrade you tractor, or get a second one later. Use you current one to rake or tedd.
Hope this helps.
PS as a start try renting some equipment and see how your tractor does. If you have a good agg company nearby, I am sure they will let you try - that way your only out the rental funds if it does not work.