The impact of rural gentrification on input use efficiency in agriculture: prospects for sustainable rural development in Poland

Gentrification occurs when capital flows into rural areas through various channels, changing land use. At the beginning of this process, the potential income capitalised in farmland prices becomes detached from the current net return, creating a rent gap. The rent gap in the context of the Common Agricultural Policy (CAP) can lead to different land use scenarios that affect the sustainable development of rural areas in a number of ways. In effect, farmers can: increase the efficiency of input use; dispose of low-productivity assets and allow new capital to flow in; accept inefficient input use in agriculture while becoming ‘bi-professional’. The main objective of this article is to answer the question of which of the above scenarios is the most likely, and to discuss their consequences for sustainable development. The results indicate that the rent gap induces farmers to reduce input-oriented efficiency in farming while retaining low-productivity assets.