1020 diesel hydraulic problems

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My neighbor is 91 years young and is lost without his tractor.
He asked me to help fix the 3 point problem. It will not lift. He mentioned the power steering didn't work either. Last time he used the tractor the 3 point was lifting slow. Now, not at all.
The fluid he drained out was milky white. How would that much moisture get in the system?

I know very little about the hydraulics on this tractor. Any guidance is greatly appreciated.

Where do I start?
 
As far as the water I would suspect the rubber boots around the shifters as a point of entry. Dump the old oil, change the filter and pull the screen from the bottom of the transmission housing. The screen is behind a plug in the side of the tran. hsg just ahead of where the right final drive bolts on. It takes a 1/2" breaker bar to remove. It is possible that the water has deteriorated the brake linings and it will end up on the screen, looks like red mud. If this is the case the brake disks need to be replaced. I would mix hydraulic oil and diesel fuel to flush the system, run for a couple of hrs and dump. replace filter and refill with new oil.
Start here and let us know what you find.
 

Thanks for the quick reply. He did drain the fluid. Said it only dumped out 6 gallons. I see in the specs that the capacity is 10 gallons so there has to be some old fluid in there still.

I'll get some diesel to add and do the flush and check for the screen. I'm not understanding the comments on the brake linings and discs. I'll do some searching but if you could explain, I'd greatly appreciate it.

After my previous post I went to look at the tractor. At first there was no movement of the 3 pt. and the steering was not power assist. I raised the RPM and the steering started to work intermittently. I moved the wheel back and forth and the steering eventually had full, smooth power assist. The 3 pt. started working again slowly too.

My neighbor (Bill) is happy. But, I want to know why it stopped working in the first place.
 

Screen that Tech 7 referred to that may need cleaning is parts key 15. As to water contamination of hyd oil besides checking shifter boots also check hyd filler cap breather cap for plugging. I'd also suggest to check hyd stand-by pressure which should be 2250 psi
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As previously stated. drain, flush and refill to get rid of more water and ick. Change the trans filter and replace the shifter boots.
Water in the transmission or adding the improper oil will ruin the internal wet brakes and wet pto clutch if equipped with such. The fiber material flakes off. Then metal to metal contact ruins everything.
Odds are the coolant may still have freeze protection but the corrosion inhibitor is long since depleted. Drain, flush and fill with HD diesel concentrate and distilled water. Or your neighbour will be pricing new engine sleeves.
 

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