This study aimed to identify the effect of the rice straw chopping process  on the bales storage capacity. Chopping process of  straw rice was carried out under three drum speeds, three feeding rates and three moisture contents of straw. Baling process was used to press chopped straw with three frequency speeds of plunger to press chopped straw, three feeding rates for chopped rice straw and different cutting lengths for chopped rice straw. The results were obtained the lowest average cutting length was7.88 mm with increasing speed of drum from 4.71 to 10.5m/s, and the minimum moisture content at 12%. The highest bale density was 144.6 kg / m³,under the frequency of press speed 0.45 m /s, for cutting length averages of less than 10 mm. The lowest storage capacity was 16.46 m³/fed, with a maximum compressing speed of 0.45 m /s and a feeding rate of 1.5Mg /h with the use of cutting averages less than 10mm. For the chopping process, the lowest energy requirement was8.9 kW.h/Mg at 4.71m/s and 12% moisture content with feed rate of 1.5Mg /h. Otherwise for the baling process, the lowest energy requirement was 5.67 kW.h /Mg at a compression speed of 0.24 m /s, feed rate of 3Mg/h and average cutting lengths greater than 20.5mm. The lowest production cost obtained when chopping straw was79.7LE /Mg with a speed of 4.71m/s, a moisture content of 12% and a feed rate of 1.5 Mg/h. The lowest production cost obtained when baling chopped straw was 98.5LE/ Mg with a speed of 0.24m /s and feeding rate of 3Mg /h.