A material reduction system and processing tool for a material processing machine. The material reduction system comprises a tool holder fixedly mounted to a rotary drum. A leading member defines a raker surface oriented away from the operating direction at a first predefined angle. A processing tool is removably coupled to the tool holder. A leading face of the processing tool is oriented toward the operating direction at a second predefined angle. The first and second predefined angles are such that material is directed into contact with the reducing member to limit material contact with the tool body and the tool holder. An upper flange of the processing tool directly abuts the tool holder to direct material away from the tool holder. The upper flange and a lower flange define a tool recess configured to receive a projection from the tool holder to prevent rotation of the processing tool.
