I ride out in the country. The sticks. Rural America. It's considered polite--and it's customary--to wave at others you encounter along the road. That includes farmers driving tractors, people walking along the road, farmers working the fields, and yes, bicyclists. You can always spot the city slickers out of their element because they don't wave at anyone. Waving hicks like me fit right in, despite my shocking attire.
It's the same way out where I live. You can always tell who's local and who isn't...