Managed to grab a crate (didn't spot any other bait items) and even toss it into the water. Once a fish bit, though, I couldn't figure out how to reel it in, even after clicking and holding LMB. Might just be me missing something.
Exactly this! A rising sound after the fish bites would be perfect to show that it is indeed going up. It's also really fun to pull the rod back to "catch" the bait, very creative :D