Hum.... I would worry about the facet myself. They make frost proof facets for using on a building, my question would be if one of these could be used in your set up.
I did a search and didn't find any home-made versions like you describe.
So I had another idea -
How about never filling the hole around your hydrant. Use bricks to keep the soil from falling in, and fill around the drain with a small amount of rock. Next, fill the rest of the space with easy to remove insulation. Cap the top of your hole around your hydrant with a cut section of plywood to look nice. Then if you ever need access again it's a simple job to get to your plumbing.
When I replaced my two
yard hydrants with the frost proof type I back filled the large holes with easy to remove washed rock. We don't get the freezes here in Western Oregon like most places do, but I still don't want to dig up that heavy clay ever again so I feel your pain.