I've read some docs on both alfalfa and regular hay, and tried them both. The good part is I have enough water, that if it creates a problem, then it corrects itself quickly. The bad part is that I've got enough water that I can't really get a good feel for long term benefits.
I have experienced clearer water in small areas that I dumped hay, but I'm leery of recommending it because of all the variables in pond water and the hay itself. FHM did seem to gravitate quickly to those areas though. I'm not sure if it was the clearer water, or just the ideal temporary habitat. Smarter guys than me will have to figure that out.