CH47,
You will likely be disappointed. Torque is a product of gpm x pressure. Under producing gpm substantially reduces torque.
I have a direct drive system I built. My small ford output is similar to your tractor. Used a small white motor, don't remember cu in displacement, coupled to a used stihl drive head purchased from a rental store. No gearbox in the system.
Use 6 inch auger primarily for fence posts. Works Ok, reversing will sometimes loosen a large rock. I have a 8 inch auger as well. It struggles with that size. Anticipate little success w/ 12 inch. I did connect the unit to the large gpm output on my Lull once. Huge difference, using low engine rpm to not exceed max hyd flow. Built a simple fork receptor mount, using an PHD on FEL is the greatest.
If you really want production, you would buy a prince, PTO pump, and a hyd. Reservoir, and power it that way, but it would be a tower mount configuration to include the reservoir. A valve required, for reversing.
The biggest disadvantage to your proposal, NO Down pressure. That is the secret to production. That is why FEL mount is so functional. I added an additional 2 spool power beyond valve that sisters next to my loader valve. I usually stand next to tractor for unobstructed view, engage loader valve for down pressure, and motor valve for auger direction. With compacts, very accessible from ground for controls.
My system investment was about $500 in around the year 2000.