everything from the flywheel back is different,the 706 has a hyd ta and differnt rear end.wet brakes,.Its a different ta housing and rear end housing.
 
external_link should have pics. Probably some pics on here too. My favorite of the 2 would be the 656. Steve nailed it on the head.
 
I agree with the other posts but will add the 706 is a heavy duty tractor with the same basic rear end as the larger tractors(8 speed + TA) where the 656 is lighter and not as durable if used for heavy work.Some things are similar to a 460 in there(5 speed + TA),smaller clutch etc.
 
the 706 doesn't have "wet" brakes. unless there is a leak. the brakes are dry-disc, hyrdaulic powered. as mentioned, hydraulic ta, 8 speed forward, 4 rev vs. 5/1; dual pto; larger rear axles, not sure what else?
 
I have both tractors. I love the 656. It is a very versatile tractor. This tractor has done many jobs on the farm from being the loader tractor, raking haying, cutting hay, planting corn, carrying a mounted corn picker, spring/fall tillage...it has perform very well. The 706 is the recent addition to the shed. bigger, more hp, different mechanics, a good work horse. As many people have commented about the 706 "cheap horsepower". It can handle the work load of spring and fall tillage.
 
There's not much in front of the flywheel that's the same either, except the engine. The difference there is the 656 engine runs at a lower RPM to produce less HP.

The 656 is the "next size smaller" tractor from a 706. It's design is based heavily on the earlier 460, while the 706 was all new except for the engine.
 

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