Yes, pull the wire off the sending unit on the tank, and then connect that wire directly to ground. The gauge should read FULL. If it doesn't, the gauge itself is faulty. If it does, the sending unit in the tank is faulty.
Since the gauge reads 1/2 full when the tank is actually full, I'd guess it is the sending unit at fault.
On some of these Farmall tractors, you need to know the maker of the gauge and sending unit. Seems like there were two different makers, and one makers sending unit is not compatible with the other makers gauge, and vice-versa.
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