Dad used to move 1600lb bales of paper with the 560 and an IH 2350 loader, so the tractor is definitely capable. It wasn't the ideal setup, but it filled the bill for several years. Anyway, observe what's happening when the loader won't lift the bales. Does the tractor strain at all? Can you hear any noises, like a humming or buzzing noise? That means the relief valve is kicking in and letting the fluid blow by inside the tractor. If you've got 1300PSI at the remotes, the problem may very well lie with leaky cylinders on the loader. The other possibility is that the cylinders are simply not large enough to lift that much weight. A 2" cylinder, for example, can only exert about 4000lbs of force with the oil at 1300PSI, and that's if it's not leaking at all. The hydraulic cylinders on a loader work at a mechanical DISadvantage, meaning it takes much more force to lift a particular weight. They're on an angle, and in between the fulcrum (pivot) and the load (simple lever science). Even two cylinders exerting 4000lbs of force each. may only be able to lift 1000lbs out in the loader bucket.
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