Farmbot motors and encoders

Hi I’m trying to source motors and encoders for this project at the moment. My question is what is the best motor /encoder combo for running this on RAMPS?

I read a few things about the difficulty of encoder pulse sensing using the stock encoder (360 pulses /rev). So would it be better for me to source a 40 pulses/rev encoder? (given i’m targeting ±1mm accuracy & using a 20 tooth gt2 belt)

For the motor, I can source a 500 mNm static torque motor as per LCO motors. Does anyone have an opinion on whether this should go higher or lower?