Jarbill,
From the looks of your territory, I feel like I know the area well... I grew up in country looking much like that.
I'd suggest NOT digging up stuff... only where you need to cut something off to make it flat... In our area, we just added river gravel and drove on it. the area of the photo is flat....
Much depends on what use you are intending... if it is supposed to be a 50 mph road into your place, then it kinda needs to be smooth... if you have a place where you can get what is called road base, then I'd just install that. You will be surprised how smooth it will become in a short while.
If the rock is as close to the ground as I think it is from the trees, then for a ranch road I'd just drive on it and add road base where experience tells you extra traction is needed.
YOu are set with the tractor you have.... get a toothbar... you will never regret it... and, it WILL keep the lip of your FEL bucket in good shape. It is ENTIRELY likely that somewhere on your place will be material that you can dig up and use on your road...
So, I think the decision should be based on how much you want to do yourself and how much you want to pay to have done... and the schedule you have to get the job completed. Hmm.. maybe money is a factor too.... typically is for me.