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Originally Posted by popamurphy
1. WHY???
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Probably to mount a bike rack or cargo carrier loaded with stuff that needed more clearance space behind the trailer.
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2. Can I cut it down to standard and go without a collar?
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There are several ways to skin a cat. That's one way.
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3. Is the collar needed for just a bike rack or extra cargo rack?
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Probably not, for loads of less than about 300 pounds on the receiver.
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4. Can I (average smuck) cut the extra off with a hack saw?
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Sure. That's one way to skin a cat.
But it appears someone added a length of tubing to the original receiver, then welded it in place.
That extra tubing out past what you are calling the collar is an extension. Disadvantage is any extension added to the length of the receiver reduces the weight the receiver can handle. I have a "factory" Reese extension that says it reduces the receiver's weight-carrying (WC) capacity to 65% of the receiver without the extension. My receiver is rated 500 pounds WC, so that means any luggage carrier I add to an extension cannot gross more than 325 pounds.
I would probably have my welding/fabrication shop use a cutting torch and cut out those welds, then remove that extension tubing, then clean up the receiver with files and sandpaper or whatever it requires (heavy duty Dremel tool?) so a 2" shank will easily slide in there. Then you can haul the full 500 pounds on the receiver without overloading the receiver.
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Grumpy ole man with over 60 years towing experience. Now my heaviest trailer is a 7'x16' 5,000-pound flatbed utility trailer, my tow vehicle is a 2019 F-150 Lariat 3.5L EcoBoost SuperCab with Max Tow (1,904 pounds payload capacity).