Probably funding in-vitro meat is the way to go. Promoting free-range farming might be a waste. In western, developed countries, there is something of a trend moving toward these sorts of meat consumption (
warning: anecdotal evidence). Whilst this trend could in theory be accelerated, I don't know by how much, and how quickly effects would become apparent.
Also, in countries which are experiencing high rates of economic growth, meat consumption is massively increasing (china has seen kilos of chicken consumed per year go from 7.9 - 9.4 from 2007 - 2010,
source). With that much demand, getting people to embrace free-range meats in those areas is pretty unlikely, as the price would probably sky-rocket. So, what I'm trying to get at is that you might manage to get the West to embrace free-range meat (to an extent), but the East is rapidly embracing factory farming, and therefore total amount of factory farmed meat will probably increase. Indeed, worldwide meat consumption is
expected to double between 2002 and 2050. Free-range meat promotion would barely put a dent in this but if in-vitro meat became cheaper/healthier/tastier than the real thing, we would expect "real" meat-consumption to be reduced massively.
As for when we'll get in-vitro meat.... Estimates vary a lot. New Harvest gives fuzzy figures, saying that processed meat (sausages, hamburgers) could be available in "several years" but things like steak etc "would involve technologies that do not yet exist and that may take a decade or longer to develop". A
Scientific American article emphasizes lack of funding for in-vitro meat and claims that this is the main barrier. The wikipedia article is decent, not giving any specific dates, but seems to have a good grasp of the challenges. Personally, I put even odds on having cultured processed meat (hamburgers) before 2020. Then, 70% probability of steaks by 2030 and 90% probability of all currently eaten meats being available in cultured form before 2040. Though I haven't studied the issue in depth, so I need more information. Thinking about it, I might fire off a few emails to researchers in the field, it can't do any harm to find out their opinion of ETA of the meat, and how much funding they need.
A disappointingly low amount of research is being conducted on this problem, and, oddly, most of it is being conducted by Dutch scientists 'cause the only real initiative proving immediate funding is in the Netherlands. So, arguably, this could be some low-hanging-fruit for utilitarian investors, especially as we might get multiplier effects due to publicity etc.
Alternatives... You might try to make it so that
farm animals feel no pain (but presumably still mental distress). A (fairly) simple genetic alteration in mice was enough to do it. You might try vegan outreach or any veg*n group which tries to convince people to be veggies. Ermmm. There must be more alternatives out there, but for the life of me I can't think of them