(FORTUNE Magazine) – You won't hear any whooping quite yet -- no one wants to jinx it -- but things are really looking up, down on the farm. After enduring more than a decade of depression, drought, and finally last summer's devastating flood, the farm economy is set to rebound dramatically. ''There is real, long-term optimism here,'' says Mike Jacobs, editor of Agweek, which is published in Grand Forks, North Dakota. The financial cyclone of the 1980s cleaned out many marginal farmers, and the survivors have balanced their checkbooks. As a result, foreclosure fever has passed, few farms are for sale, and prices for acreage have stabilized. Prices are rising for corn, soybeans, and wheat -- especially varieties of hard wheat, which thanks to the consumer's increased appetite for pasta are fetching over $5 a bushel, vs. $3.50 a year ago. Wheat exports should be strong as political turmoil hampers Russian production. Another positive could be NAFTA, as farmers and processors look to export grain, milk, and beef to Mexico. Some U.S. farmers are already shipping pinto beans south of the border. Food processors also could be looking at a bumper year since their cost cutting more than compensates for increased crop prices. Prudential Securities analyst John McMillin points to Archer Daniels Midland, which now processes about one-third of the nation's wheat, corn, and soybeans. McMillin looks for cost cutting to help boost earnings 25% this year. Meanwhile, lower interest rates did more than allow farmers to refinance their mortgages. They also helped create a surge in demand for heavy equipment, notably tractors. The stock price of manufacturer Deere has cranked up from $55 a share to $88 over the past 12 months.