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 - Upgrading an Oliver Super 55 Electrical System - by Dennis Hawkins. My old Oliver Super 55 has been just sitting and rusting for several years now. I really hate to see a good tractor being treated that way, but not being able to start it without a 30 minute point filing ritual every time contributed to its demise. If it would just start when I turn the key, then I would use it more often. In addition to a bad case of old age, most of the tractor's original electrical system was simply too unreliable to keep. The main focus of this page is to show how I upgr
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