We have been unusually sensitive about the humane treatment of animals, after the loss of two of our kitties (sadly, both passed within a month of each other). My room mate rented Food Inc. It was quite an eye opener, but we had always known that, as meat eaters, we would have to reluctantly turn a blind eye about where our meat comes from. The movie did mention that there are farmers out there who also believe in the humane treatment of food animals -- that they have space to engage in "normal behaviors," get nutritious food, aren't pumped full of steroids or antibiotics, and are slaughtered humanely. We just didn't know how to find any of these products.
So I did some work on Google and found the website of Humane Farm Animal Care, which puts a label on foods that have been humanely raised. Looks like we may be spending more of our meat dollars at Whole Foods and/or Wild Oats.