This all depends on your budget, how much time you have to spend on your farm work, and how much you value you place on having modern equipment. If you're wanting to cover 120 acres in the evenings and on the weekends you'll want to be able to cover ground quickly. If I were in your shoes (which actually I am) I'd be looking for an older large-frame 100+ hp tractor for the field work (like the JD 40-series you mentioned) and something smaller for a loader. I recently purchased a nice IH 986 with cab, A/C, and duals for under $10k which will allow me to get the work done in the relatively few spare hours I have. And, it's heavy and powerful enough to handle things like a 15-ft no-till drill should equipment like that be in the future. Personally I'd separate the loader and field work into two different tractors. For $20k you could have both a field tractor and a smaller loader-equipped utility tractor, both appropriately sized for the jobs they are expected to do. This budget won't allow for a cab and 4WD on the loader tractor (or 4WD on the field tractor, for that matter) but "real" farmers managed without this for years and many still do. (My FIL has never had a cab-equipped loader tractor and he's farmed full- time his whole life.) It's all just a matter of how much you're willing to spend on creature comforts and fancy features over and above what is required to simply get the work done.
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