The problem is in your hydraulic block in the steering column. Likely a broken spring or could just be rust and crud preventing the plungers from moving properly. They are not hard to work on. Worst thing is you have to remove the cowel around the fuel tank to get at it. Make sure you mark the lines that go to the cylinders so you get them back correctly. If you go into it make sure you replace the seals above and below the hyd block. They are known to fail and puke oil out. You will need at least an I&T FO-31 manual to retighten the spring washer properly. If you have any troubles there are plenty of guys on the Ford board that can help you.
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Today's Featured Article - Ford N-Series Transmission/Hydraulic Fluid - The Full Story - by Llamas. The transmission fluid in an “N”:-series tractor lubricates the transmission, differential, rear wheel bearings, PTO and hydraulic pump drive, and it also cats as the working fluid for the hydraulic lift. In 9N/2N models, it also lubricates the steering sector and shaft system. The owner’s manual for the 9N and 2N models specified the use of only two fluids. They were STRAIGHT MINERAL OIL SAE 90 (above freezing) and
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