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If it is something simple like a seal, as Ron suggested it may be, I would fix it. If it is something major I would dump the sprag transfer case and put in a air shift.
I've seen farmers do some pretty scary things that was "good enough for the farm" , farmers love to cut corners. I've seen farmers around here take a brand new combine and ram the guardrails out on narrow culverts because the didn't want to drive a mile around to one it would fit over.
It is probably more related to people using to small of tractor for the generator . You know I got this smoking deal on a huge generator rated for a 75HP tractor , but I don't need that much power so my 30hp tractor will work.
Welcome to SS, this is a good thread to read before buying a deuce.
cost of ownership (the real cost of a deuce)
Edit; Keep in mind this is eight years old when there was still a ton of deuces coming out of government auctions.
They will disappear just like the brick and mortar stores that E-bay, Amazon, Walmart online ect . put out of business . It is the nature of the internet ,GP is now the Amazon of military surplus.
Morbark Industries here in mid-michigan has over 200 trailer mounted chippers and a dozen high speed shredders ready to ship to FEMA contractors for clean-up efforts.
https://www.9and10news.com/2018/09/11/northern-michigan-company-prepares-to-help-with-hurricane-relief/
It was designed as a tactical vehicle not a tow vehicle . You can gold plate a turd , but you just end up with a expensive turd.
So throw all the money you got at a HMMWV and you still won't have a tow vehicle what does what you expect.
There was a news release here this morning that the governor is sending Michigan State Police troopers to Philadelphia to stage for operations with the hurricane .
I wouldn't worry anyway with a diesel . I used to work for a pond digging company and we used to run a 110HP IH farm tractor with a 16 inch gator pump hooked to it for months at a time .