I'm in the NW too, just north of Seattle. I found a local supplier for an orchard grass mix. Paid $5.50 per 75 pound bale stacked in my barn. I have 140 more bales at his place that I paid $5.00 a bale for but we have to go pick it up. No biggie.
There is a supplier here for eastern WA hay and the big three string bales (100-110 pounds) bales are going for 11.50 for alfalfa and 14 for timothy/alfalfa mix, and the same for orchard. It all looks like very nice stuff. My one mini mare gets the runs on orchard grass, so I'll be buying a T/A bale from them occasionally for her.
I have heard the same about the western part of the state plowing up hay fields for corn, but I have also heard that farmers are really jumping the gun on that too. Does it make sense to have one crop at $180 a ton (corn), or several crops they can sell for a minimum of $200 a ton? Plus the price for corn is dropping as apparently there is such a rush to plant/sell corn, there isn't the capacity to process all of it for ethanol. I need to study more on the issue, as it's interesting to me, but I'm also very concerned about what it means for all of us horse owners.
Jayne