Ford used that type of pre-heater quite a few years on many of their 3, 4, and some 6 cylinder engines. All of them were activted with the ignition switch. Some of them you had to turn the switch backwards one position, and some of them you had a pre-heat position just before the start position (between "on" and "start"). If your switch wonl't turn backward, see if there is an extra position between "on" and "start".
There is a small fuel line that has to connect to the pre-heater for it to work properly. The line comes from a small fuel pot on the left side of the tractor under the hood beside the voltage regulator. The return line from the top of the injectors goes to this fuel pot before going to the fuel tank. The small line for the pre-heater comes out the bottom of the fuel pot.
The way this thing works: When you activate the pre-heater, a wire coil inside it starts to get hot. At a pre-set temperature, a small valve in the pre-heater opens and lets a small amount of fuel flow across the wire coil. This vaporizes the fuel. The heated fuel vapor and warmed air will start the engine easier than cold fuel alone.
Hope this doesn't confuse you more.
Mike