Have someone try to shift it in and out of those gears while you go and watch on the RH side of the trans behind the front area of the rear tire. You will see the shifting linkage moving up and down moving a shaft going into the trans. Lubricate the shaft with a penetrating oil where it enters the housing. After some use it should begin moving easier. The oring that seals the shaft is located in about a inch leaving a area were the shaft can get rusty inside making it hard to turn. You can remove the pin connecting the link rod to the shaft and then everything in the cab should move very easy confirming that it is the shaft getting tight, Rod.
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Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
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