I used size 1/8 drill bit. I have been soaking and starting one new basket every day but I'm contemplating doing it less often. Maybe every other day??
Here's what I came up with for a small inexpensive fodder system. I got these baskets from Amazon and drilled drainage holes in the bottoms of them. I'm using wheat because it's what I could find.
Here is a link for the baskets I used. http://amzn.to/1SVGAce