We've taken steps to address the over the top cloth farming. Here's how it works.
NPC vendors now refill their stock slowly instead of having an infinite amount always available. This means you can no longer take 5000 cloth to a vendor to sell it for scrap. You can sell some, but then you'll have to wait. Selling cloth and other farmed items for scrap was never intended to be the go-to method of progressing in the game so this change needed to happen
It's important to note that the rate of replenishment will likely only affect the abuse of the cloth trade at the Produce Exchange, all other items fully replenish their stock much quicker.
Extremely large farms were poor for client and server performance, and we don't think players should get endless amounts of scrap and in turn resources for sitting in their base. Players will still be able to farm and sell cloth and other produce but at much lower volume. Hopefully this switches the farming demographic more towards low/medium tier players or those less PvP savvy. Maybe now people will farm berries and sell Pure Teas for a profit? Just an idea.