For sure the cost of carbon and other pollution should be factored in. But I don't think the externalities are that large really. I would be surprised if the cost would go up more than 20% if we had a proper carbon tax in place. At least after the market adapts.
lol, what? I have blueberry bushes in my yard, they were like $5. i put them in the ground and then ignored them for years. It is true that not every piece of land can do what i did here, but these sweeping "marvel at the advance of farming" ideas are silly to me. I had a peach, plum, orange, and fig tree in my back yard growing up in california. When we sold the house the new owners tore them down. I think that's sad. Fresh, free fruit every year?
Now, growing enough of one thing to be able to sell it to turn a profit might have "greater externality" but even that might not be true depending on the methods used. There are composting farms where people bring their refuse - specifically "anything that was alive recently" can go in the compost, and this will provide nutrients and soil amendments in a sustainable way to that farm, which can then provide nutrition to the community it serves.
You can't feed the planet with a small, self-sustaining farm. But this idea that it's a net negative needs to DIAF.
Yeah, a carbon tax is the way to go. I wouldn’t be at all surprised if you are right that the externalities aren’t huge on this one, but it would be good to take them into account regardless.