Natalie, the amount you are using should be fine. Using alfalfa pellets isn't like using regular fertilzer so you shouldn't have to worry about them getting to much fertilzer.
I've never heard anyone say that too much alfalfa killed their daylilies so you shouldn't worry about that. I have never had any damage from the alfalfa and like I said I use A LOT. I grab a huge handful and throw in and mix around then backfil halfway and add more then I will go back and top dress when I get all of them planted. There was someone who used to (or still does) make the mound in the hole with a pile of alfalfa pellets and sit the daylily on top of the pile.
Even though it goes hand in hand, I don't use alfalfa just for the plants. I really like seeing those huge, fat earthworms in my beds when I dig something up. It tells me that my soil is healthy and there is plenty of microbial activity going on and I have plenty of earthworm castings to help the daylilies grow as well.
The only thing that I have found that I have used that has burned/hurt the daylilies was adding milorganite to the ones I potted in the black nurserey pots just recently.I should have known better:whistling: , but I didn't realize it was going to get as hot as it did. Last year I only added a smidgeon and it was fine, but this year I added like a cup full and I should have waited until November and just top dressed the pots. The ones in the ground were fine, it's just that the pots already get really hot in the sun anyway. They are bouncing back fine, but they look so pitiful. The ones I divided and potted 2 weeks after those look really good and I didn't add the milorganite to them
