I'm in northern California, and we also buy by the bale. If it's priced by the ton, it's still baled, you just get 20 bales (our bales are pretty much always around 100 pounds, 3 string). We feed twice a day, and go through about 16 bales or so a month. I believe we pay $10 or 11 a bale, but it is direct from the grower, and high quality hay. Feed stores are around $18-20, and the hay is definitely inferior.
We feed alfalfa, as our horses are picky, and will waste tremendous amounts of grass hay. The best grass hay I've ever found was a tri-forage of beardless wheat, oat, and barley. They LOVED that hay, never wasted a single stem of it. Ate it like it was candy. It smelled wonderful. Haven't been able to get it for a few years now. Hopefully he'll start growing it again, but it's not as big a money maker as the alfalfa (and less of a return, as it's a single cut hay- so only one cutting of it a year, where he gets 4-6 cuts of alfalfa).
Sadly, our grower went mostly to alfalfa, so that's what they get. Our grower is awesome... we don't have a lot of storage, so he does his best to keep a supply for us all winter long. If he runs short (almost always just a month or two before first harvest), we end up filling in the gap from the feed store, with lower quality hay (and the horses let us know about it!). He'll even bring in hay from out of state for us (and others, too), if he runs out too far from harvest and charge us what he's been charging. He's just a really awesome guy.
With my mom recently winning 1000 pounds of a local high quality pellet from the Western States Horse Expo in June, we're going to add in pellets, and hopefully cut down their hay usage a bit. It's a complete pelleted feed I've fed in the past, and had been happy with it. For various reasons, we've been hay only for a while now. I want to change their diet a bit, partly in hopes that it will help with weight management. Alfalfa is tasty, and all that, but holy cow have they put on the weight (and it really doesn't help when it's overfed, as well *sigh* the joys of having someone else feed and not listen).