Aside from the reasons given below, large diameter tires with no more rubber on the ground than small diameter wide tires, give better traction and more flotation. My dad saw this 60 years ago, traded a W4 with 14x26 tires off for an H with 11x38, very close to the same square inches of rubber making contact with the ground, both tractors having basically the same power train, yet the H was all over the W4 on drawbar pulling on soft soil. Basically a field situation across much of eastern North America, with annual rainfalls exceeding 36". You go to hard roads or the mid west to prarrie firm soils and rainfalls much less than 36" and the wide small diameter tire will do just as well. By the way those mid west to prarrie soils are firm because they don't have the rain fall.
Large diameter tires also do much better in sandy to sandy loam soils. That and the reasons others gave is precisely the reason why any given tractor has wheel and tire options. Depends on who buys it, and what they are going to use it for.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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