View distance affects the area sent to the player, and simulation distance affects the area actively rendered around the player. Test both separately.
Step by step
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Note the current value of two settings in the
server.propertiesfile of the Java server. Paper world settings or plugins can change these on a world-by-world basis. -
If the tick time is high, first reduce the simulation distance by a small step. Test how farm, mob and redstone behavior changes.
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If the network or chunk sending load is significant, change the view distance in a separate attempt. The view distance on the player client also affects the view.
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Compare the new MSPT value and gaming behavior at similar player density. Choose between good performance and acceptable field of view.
Keep in mind
Low simulation distance does not give the same result for all farm designs.