I personally think Farrior re-signs for less than market value. After this year, I think he'd be good enough to give us one more season or two (maybe one as a starter and one as a backup).
He has already stated he would be willing to do so because he wants to be a Steeler. Here's how *I* would accomplish it(stop shaking your head and read the whole story before you make up your mind).
I would talk to him TODAY and offer him an extension totalling 3 years (including this year) worth say $10 mil (with a $3mil SB). He's finishing a 5 year, $16 mil contract, so average per year is about the same (in fact, it's a small increase from $3.28 million annual average to $3.33).
What it DOES do is this - it gives him $5 mil this year ($3 in bonus, $2+ in salary), so he'd be happy because he's only scheduled to make $3.2 (he has already collected his SB). It would LOWER his cap figure for this season from about $4.5 million to about $3 million.
If by chance he stinks it up, after this year, he's only a $1 million cap hit to drop if spread over the remaining 2 seasons (or $2 mil if before June 1, 2009).
Now... does he take it? I dunno. But, over the last 5 years, he made $16.4 million (average over $3 mil per year) - if he's sincere about being willing to take a pay cut, this should be a slam dunk.