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Of course you don't want to "steal" it from someone who's obviously close to you, but at the same time you shouldn't pay more than the value. You can buy running W-9's with decent rubber for less that two thousand most anyplace if you can find 'em. I'm dealing right now on a WD-9 that runs with useable tires and a loader for $800 but I don't see many for that price. A big part of most any tractor's value is the condition of the tires, and from the description of the rest of it I'd wager they'd most likely need replacing too which would run you up over a thousand bucks if you went new on all 4. As for the rest of the tractor, engine parts for 9's aren't as easy to come by and cost quite a bit more than more common models like the M's, H's, etc. and it's a pretty safe bet you'll be looking at pistons and sleeves at a minimum since the head has been off for a long time- figure another grand minimum to get the engine running. The tin's not too hard to find. As it sits, just going off your description, to be honest it's real-world value is pretty much whatever it weighs in scrap or what it'd be worth parting it out. So, from the sounds of it, I personally wouldn't go much over two or three hundred dollars, although I've seen ones in similar condition go for double or triple that or more on auctions when two or more bidders both decide they "have" to have a particular tractor. My feeling is that they paid more than what the tractors were worth in general, but were willing to pay what the tractors were worth to them personally. So, talk it over with the owner, draw some circles and arrows in the dirt with the toe of your boots, and come up with a price you can both feel comfortable with. As a closing thought, keep in mind it's probably worth at least a little to the owner to know the tractor will be going to someone close to him who will appreciate it rather than being melted down and shipped overseas to become a new Honda.
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