Does a farmer have to pay taxes on his home and land? That requires money under our current system as well as under the proposed system. Does he ever need tools, seed, fertilizer, or water? He better have capital to cover those costs. Whether he is involved in some other endeavor or if he is selling his produce, there is income on which he will probably be paying taxes.
Under the proposed he will be paying his tax when he purchases his goods and another consumer will pay at the retail level for the farmer's goods.
A self-sufficient farm is a utopian dream under any system that requires payment of property taxes. Those taxes will have to be paid with cash -- the government doesn't like the barter system. To come up with cash the producer must sell some of his goods which creates income.
I was looking at income tax only, without regard to property taxes. But what you say is absolutely true.