VCBurner - one website you might find useful is:
www.eatwild.com
The site lists, by state, small farmers who are producing pastured meat, free-range chicken, eggs, etc. We used it to find a small farmer near us from whom we buy pastured beef and pork. I can honestly say that the products are superior in taste and, if you buy in bulk, very cost effective. Plus, I feel a lot better spending my money on this family's product which then goes to another family butcher operation - keeping our money local, competitive cost, superior product. Everybody wins!
I was outraged after watching "Food, Inc." - it amazes me that small farmers can loose in court to companies like Monsanto when it was really Monsanto that contaminated the small farmer's fields and tainted their heirloom seedstock. Plus, the intimidation tactics used, etc. Ridiculous. But, companies like Monsanto have masses of folks that lobby our supposed "elected" representatives to make sure that they are taken care of - ridiculous. Then, those scenes of the beef being processed in ammonia. Nasty stuff.
All we can do is keep doing what you're suggesting - buy local, grow an increasingly larger portion of your own food, help get your friends, family, neighbors, co-workers involved, etc.