If it is a hand clutch, then I believe it will be an "over-center" engagement. Crawlers (T9 or TD9) use the same clutch and they have an adjusting ring that is easy to get to. Perhaps the previous owner did some adjusting or even broke some parts.
Goto CaseIH on-line parts book and look at the drawings. I think it is four bolts that attach the large clutch cover on the 650. Take a look in there too.
Of course, you may not know what you are doing. You might be expecting a "springy" clutch. If you push the lever forward, you might actually have a clutch that is functioning properly.
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