Spray a 9x13 glass dish, lightly, with cooking spray.
In a large, microwave-safe mixing bowl, combine the marshmallows with the butter. Microwave for approximately 2 minutes to melt butter and marshmallows. The marshmallows will get very puffy and large, so be sure to use a large enough bowl.
Once melted, add the rice cereal and use a rubber spatula to mix it together.
Push the mixture into your prepared dish. Use the rubber spatula or your fingertips to push it together. Set aside for now.
Preheat the oven to 350 degrees Fahrenheit. Spread your coconut in an even layer on your sheet pan. Don’t grease the pan. You can use parchment paper if you want however the coconut won’t stick to the pan. Bake for 5 minutes. Remove the pan from the oven and flip the coconut. You want the coconut to toast evenly. Bake for an additional 5 minutes or until the coconut is a light golden brown. Remove from the oven and cool in the pan (this only takes about 5-7 minutes to cool down).
Place the peanut butter chips and the coconut oil in a small, microwave-safe mixing bowl. Microwave the chips at 50% power for 1 minute. Stir. Continue microwaving in 30 seconds increments at 50% power until fully melted and smooth. Depending on the microwave, this could take 5 minutes.
Cut the rice krispie treats into small rectangles. I cut them into 16 bars.
Now it is time for the final assembly. Dip each rice krispie treat into the melted peanut butter chips. Cover all sides of the treat and allow any excess to drip off. Immediately roll the treat in the toasted coconut, coating all sides. Place on a piece of parchment paper or a cooling rack. Let the treat stand until the peanut butter chips have set.
Once the treats have cooled, wrap the licorice around two ends of the hay bale. Enjoy!