In a recent article in this journal Falk and Lee (FL) employed a present-value model to study the dynamics of farmland prices in Iowa over 1922–1994. They decom-pose farmland prices into fundamental and nonfundamental components using a three variable vector autoregression model. The logged variables included are the change in real farmland rents, the change in rents less the real interest rate, and the spread between real farmland price and rent. FL find that nonfundamental shocks are an important source of volatility in farmland prices and that these price movements are due to fads not speculative bubbles. We argue to the contrary and provide evidence that supports a partially collapsing bubble.