I'd be inclined to run it like it is unless the clutch is slipping and the hydraulics are shot completely.
My expereince has been that on major reworks I spend more than a good newer tractor could be had for. For example, a good used 7610 Ford series II with 3800 hours sold here out of the city motor pool for 7500. If your tractor is worth 4000 like it is and you put 6500 in it thats nearly 11,000 toward a newer tractor. The 806 could need an engine, injector pump, anything in the very near future.
When I start a project I always try to calculate what the tractor will part out for. If I can fix it for what the components are worth, or when I get to 500 over what it will part I break it up. It took me 3 times to learn that buying a tractor for 5000 and putting 5000 in it still left me with at best a 5500-6000 tractor. Just not my kind of economics when good late model tractors that dont need a bunch of stuff can be had in the 10,000 range.
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Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
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