Hello, this build utilizes submersible redstone. Yes, underwater redstone.

The build is a tiny 3 blocks wide only for this post for demonstration purposes.
The water in front of the kelp and piston should be source water as well as the slabs are waterlogged, although on the lowest layer there does not need to be slabs
With the water sources in place and the signs in the proper places the kelp will flow into the row of hoppers below.
The other half of this farm is the part that can be completely underwater;

I did have it underwater but that made it all too hard to see for the pics so I removed it. The circuit is pretty easy to see and understand, Observer sees kelp grow which powers sticky piston, (pulling a slime or honey block back when it depowers). The observer on top of the sticky piston then sees the stone brick block in its face and sends power to a piston to break the kelp.
The first observer then sees the kelp change shape again after breaking the piece above it which makes the cycle repeat leaving the slime/honey with stone brick back in its starting position. waiting for kelp to grow again. Therefore the redstone of this farm is completely submersible as is the one in my current base.
The largest setback is observer and piston limits per chunk on the server. Making my build only capable of 30 kelp plants auto farming at once. 30 plants requires 60 observers, 30 pistons, 30 sticky pistons. With that knowledge an auto kelp block crafter for a fuel source is not viable as the influx ratio does not keep up with processing.
For those players that like to make huge farms this would be fine but I try to keep my farms contained in small areas, rip me I guess.
It was fun figuring out how to get a vertical kelp farm to work.
Hope this helps, have fun out there.

The build is a tiny 3 blocks wide only for this post for demonstration purposes.
The water in front of the kelp and piston should be source water as well as the slabs are waterlogged, although on the lowest layer there does not need to be slabs
With the water sources in place and the signs in the proper places the kelp will flow into the row of hoppers below.
The other half of this farm is the part that can be completely underwater;

I did have it underwater but that made it all too hard to see for the pics so I removed it. The circuit is pretty easy to see and understand, Observer sees kelp grow which powers sticky piston, (pulling a slime or honey block back when it depowers). The observer on top of the sticky piston then sees the stone brick block in its face and sends power to a piston to break the kelp.
The first observer then sees the kelp change shape again after breaking the piece above it which makes the cycle repeat leaving the slime/honey with stone brick back in its starting position. waiting for kelp to grow again. Therefore the redstone of this farm is completely submersible as is the one in my current base.
The largest setback is observer and piston limits per chunk on the server. Making my build only capable of 30 kelp plants auto farming at once. 30 plants requires 60 observers, 30 pistons, 30 sticky pistons. With that knowledge an auto kelp block crafter for a fuel source is not viable as the influx ratio does not keep up with processing.
For those players that like to make huge farms this would be fine but I try to keep my farms contained in small areas, rip me I guess.

Hope this helps, have fun out there.