Approved:  _________________
__________________________
Michael J. Mulcahy, Secretary   


GEHL COMPANY

DIRECTOR STOCK GRANT PLAN


          1.Purpose.  The purpose of the Gehl Company Director Stock Grant
Plan (the  Plan ) is to promote the best interests of the Company and its
shareholders by providing a means to attract and retain competent independent
directors and to provide opportunities for additional stock ownership by such
directors which will further increase their proprietary interest in the
Company and, consequently, their identification with the interests with the
interests of the Shareholders of the Company.

          2.Administration.  The Plan shall be administered by the
Compensation and Benefits Committee of the Board of Directors of the Company
(the "Administrator"), subject to review by the Board of Directors (the
"Board").  The Administrator may adopt such rules and regulations for carrying
out the Plan as it may deem proper and in the best interests of the Company. 
The interpretation by the Board of any provision of the Plan or any related
documents shall be final.

          3.Stock Subject to the Plan.  Subject to adjustment in accordance
with the provisions of paragraph 7, the total number of shares of common
stock, $.10 par value, of the Company ("Common Stock") available for awards
under the Plan shall be 25,000.  Shares of Common Stock to be delivered under
the Plan shall be made available from presently authorized but unissued Common
Stock or authorized and issued shares of Comomon Stock reacquired and held as
treasury shares, or a combination thereof.  In no event shall the Company be
required to issue fractional shares of Common Stock under the Plan.  Whenever
under the terms of the Plan a fractional share of Common Stock would otherwise
be required to be issued, there shall be paid in lieu thereof one full share
of Common Stock.

          4.Director Grants.  Each member of the Board who is not an employee
of the Company or any subsidiary of the Company shall receive a grant of
Common Stock (a  Director Grant ) on the 31st day of December of each year in
payment of a portion of his or her retainer fee for serving as a member of the
Board.

          5.Grant Amount.  Each Director Grant shall consist of such number of
shares of Common Stock whose value on the issue date equals $3,000.00.  For
purposes of the Plan, the value of the Common Stock as of the issue date shall
equal the last sale price of a share of Common Stock on The Nasdaq Stock
Market on the issue date (or if no sale took place on such exchange on such
date, the last sale price on such exchange on the most recent preceding date
on which a sale took place).

          6.Restrictions on Transfer.  Shares of Common Stock acquired under
the Plan may not be sold or otherwise disposed of except pursuant to an
effective registration statement under the Securities Act of 1933, as amended,
or except in a transaction which, in the opinion of counsel, is exempt from
registration under said Act.  All certificates evidencing shares subject to
Director Grants may bear an appropriate legend evidencing any such transfer
restriction.  The Administrator may require each person receiving a Director
Grant under the Plan to represent in writing that such person is acquiring the
shares of Common Stock without a view to the distribution thereof.  All
dividends and voting rights for shares awarded under the Plan shall accrue as
of the issue date of the Director Grant.

          7.Adjustment Povisions.  In the event of any change in the Common
Stock by reason of a declaration of a stock divident (other than a stock
dividend declared in lieu of an ordinary cash divident), spin-off, merger,
consolidation, recapitalization, or split-up, combination or exchange of
shares, or otherwise, the aggregate number of shares available under this Plan
shall be appropriately adjusted in order to prevent dilution or enlargement of
the benefits intended to be made available under the Plan.

          8.Amendment of Plan.  The Board shall have the right to amend the
Plan at any time or from time to time in any manner that it may deem
appropriate, provided that such amendments shall not be made more than once
every six months.

          9.Governing Law.  The Plan, all awards hereunder, and all
determinations made and actions taken pursuant to the Plan shall be governed
by the internal laws of the State of Wisconsin and applicable federal law.

          10.Term of  Plan.  The Plan shall terminate on such date as may be
determined by the Board.


Approved at the December 20, 1996 Board Meeting.

12/96