After quite a bit of research and talking with friends we've decided to go slow and just take the first step. A staple in our house is milk and cheese so we've decided that we can handle 3-5 extra dollars a week on these 2 items. We're keeping the same budget and the same ration (1 gallon of milk/a week, 1 block of cheese/week, etc.) but we'll be buying organic milk and organic or natural cheeses. I'm also looking more carefully at packaging and trying to get hormone free products whenever budget allows.
All that said, I just found some great organic coupons for milk, cheese, etc. Go HERE to sign up and print them. They are good for 30 days after printing them.