First check your transmission oil level. If your oil level is low your PTO suction tube might not be in enough oil. If the oil is ok I would also say it needs new clutch pack. Clutch pack runs around 150.00. Complete rebuilt pto unit around 650.00 ready to go in your tractor.
 
Had it been giving problems or was it fine and just quit all the sudden?..First I would make sure it's not just something in the external linkage like a pin out..usually when something just quits it means something has broken or sheared off...the rear pto unit isn't much trouble to take off and check for obvious problems.
 
Run that tractor 1 gallon over full. Going down a steep hill our tractor pto would run out of oil. This solved the problem. If you do have to pull the PTO unit out of the tractor it is an easy job to do. When rebuilding the unit turn the pressure up on it all the way, it reduces slippage.
 
Removing the cover under the clutch. With a flashlight and running, you will be able to see if the splined shaft is turning .If not then it is splitting time. The constant drive for the hydraulics and PTO is shot. Check the hub in the pressure plate also. They sell one that has more rivets to hold it now too.
 
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