A method and apparatus for inserting a tag into a bale of agricultural material is disclosed. The tag is inserted into the bale material, during bale production, such that the tag is within the bale material, but within reading distance of an outer surface of the final bale. In square bales, the tag is placed in either the first or last slice of the bale. In round bales, the tag is place in the outer circumferential layer of the bale as it is formed. The tag may be gravity fed or forcibly fed into the stream of crop material as it passes from the baling apparatus pick-up to the baling chamber. A system for identifying and tracking an individual bale is also disclosed.