The white stuff on the bark is likely just a mold breaking down the bark. As long as the "white stuff" isn't on the plant itself you're probably ok. It doesn't mean there isn't something else wrong but a picture would help. Are the leaves drooping or changing color such as yellowing?

Pull the bark back just a little so the plant is able to get a little more air around it.
kay

Thanks for the info. I will try to get a pic of it tomorrow.
It rained again tonight! Sarah

I finally got a chance to take some pictures of this white stuff. I noticed as I was scratching the pine bark away some of the areas around this daylily were hard and (bark) came up more in what I would call 4-6" slabs. Here are some pictures. This plant was planted in 2009, so something has messed it up.

If that was my plant, I would dig it, pot it up and baby it. No fertilizer, no excess water. You may save it.
kay