If the oil seal in the break housing is leaking it will cause the break to grab with the slightest touch. If the breaks are adjusted so that there is little motion needed from the foot petal to engage the breaks, it may be enough to cause the break to grab in normal operation. Does not sound like anything to do with the rear end unless a bearing is out. That should not happen unless it has been run low on rear end oil. I would take a look at the break before I opened the rear end. Since the engine is sleeved, fixing the compression problem is not a monster job. Replace the sleeves and pistons and rebuild the head and you are back in business.
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Today's Featured Article - Tractor Profile: Farmall M - by Staff. H so that mountable implements were interchaneable. The Farmall M was most popular with large-acreage row-crop farmers. It was powered by either a high-compression gas engine or a distillate version with lower compression. Options included the Lift-All hydraulic system, a belt pulley, PTO, rubber tires, starter, lights and a swinging drawbar. It could be ordered in the high-crop, wide-front or tricycle configurations. The high-crop version was called a Model MV.
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