Yeah that's definitely pretty high. I might have missed this if you already posted, but does that include alcohol?
We eat really well and definitely spend much less (and I still think we spend too much). We just find a balance between organic and non. Quite frankly, we just read the science about. Not that I'm trying to start a debate, but certain foods make more sense than others to be worried about organic or not - i.e. fruit with a peel? Fine if it's not organic. In a perfect world we'd buy all organic but it's just too costly.
One thing we do is buy meat in bulk from a butcher once a year. We usually buy a hind quarter and it it's from a local-ish ranch and is free range, grass fed, etc etc. You get tons of cuts (steaks, ground, stew meat, and the bones if you want them for stock or marrow). Works out to about $5 per lb. $5!! It's easily twice that or more on average at a grocery store. You just need a freezer. Call a butcher and ask what they've got...you'll be happy you did.
Our local grocery store does, however, have organic chicken that often goes on sale - like when they need to move it off the shelf, it's often half price. We load up on that when we see it, again, throw it in the freezer. Otherwise we're fine with 'regular' chicken that we get at Costco.
We also eat a lot of salmon, but that's because I love fishing and go out often with a friend of mine. I pulled in a 15lbs salmon recently - you know what that would have cost at the store? $200+. Make friends with fishers and hunters. Our older neighbour across the way gives us moose meat whenever I help him out with something (like borrowing a ladder for an hour in exchange for moose sausage? Yeah, take it anytime!).
We also cook a lot. Like all the time, from scratch.
Anyways- our general rule of thumb for organic vs non-organic is if the price is the same, or maybe slightly above - we'll opt for organic. Otherwise, hey, we're perfectly healthy so we'll go for lower priced options. The only thing processed I can think of that we eat on a regular basis is pasta. We used to make our own, but with kids running around now, it's just too much of a time suck.