Whether it reduces tax depends on the specific tax rates. I’m not inquiring about whether it will reduce or increase taxes for farmers, but what kind of farming it incentivizes. If your taxes increase per unit land area, it incentivizes higher density agriculture which is generally going to lean more on chemicals and antibiotics (organic and free range). Unless LVT also increases the costs of inputs and labor, I don’t see how it could possibly incentivize better farming practices.