Currently, fort mode is too locked into what TVTropes calls the "Command and Conquer economy" - that is, players are responsible for ordering everything to be built, whether it's a bridge or a stew. Obviously this gets in the way of a realistic cooking system, but other people have talked through the cooking situation. A big part of that is having food cooked-to-order - that is, instead of having barrels and barrels of stacked +Plump Helmet Stew+ (however that's supposed to work), dwarven cooks will prepare food on-demand.
I suggest that this be extended to as much fortress industry as possible. Craftsdwarves, clothesmakers, jewellers, farmers, and other non-military, non-construction workers ought to spend most of their time in a prosperous fort labouring for themselves and each other rather than for the Crown.
To make this work, dwarves could follow a sort of heirarchy of needs in their decision-making - something like, safety -> security -> prosperity. A starving dwarf will work for plump helmets and a place in the dormitory, but as they get more comfortable they start buying nicer meals, renting a bedroom and stocking up on biscuits and preserved food in case of hard times. Eventually they should start buying (and wearing!) jewelery and expensive clothes, and getting their furniture decorated.
The thing is, though, these decisions are made by the dwarves themselves, paid for with their own money. This money would start with dwarves employed by the Crown - miners, soldiers, loggers, furnace operators, builders - most of the basic resource-extraction jobs. Additionally dwarves would be able to buy and sell of their own accord from the marketplace/trade depot. It may be possible for gifted traders to make a living buying and selling goods, as well. If work becomes scarce, a dwarf will slowly (unhappily) slide back down the ladder, selling their possessions to put food on the table - unless they become upset enough to just buy provisions and leave on the next caravan.
Alternately, a dwarf may take up a pick or otherwise try to get government work. Dwarves ought to be more autonomous in their choice of labours - though players should still be able to force a dwarf into a given line of work to make up for shortfalls. Dwarves could like and dislike particular work, meaning in the former they'd seek out that job if it's available, and in the latter get an unhappy thought if forced into that work.
In terms of getting things done at the player's beck and call, I'd take a leaf out of feudalism's book - if dwarves don't have the money to pay their rent, they perform labour for the Crown, whether through working the fields or just making trinkets for the nobility. This would also cover any player ordered crafts, such as uniforms for the militia. To simplify things, the player should be able to designate fields, workshops and stockpiles for private use.
Farming ought to be nerfed and mostly farmed out to hilldwarves - these along with caravans would provide an additional source of dwarven income and ease the burden on the player.