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Selecting the pipe
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Use a 2 to 2 1/2-inch-diameter schedule 40 pipe that is cut approximately three feet in length. Used pipe is very economical to use for this purpose, and it is a great way to recycle a short piece of pipe. The pipe needs to be heavy duty steel, so that it will last from repeated impacts. The additional weight will help to drive the post into the ground.
The Handles
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You will need to weld two handles on opposite sides of the pipe. These can be of the 1/2-inch round stock type, that is about 24 inches long. The round stock can be shaped by using a hammer and vice to make the round stock shaped into a narrow, 3-inch-wide by 12-inch-long half-rectangle. Add a 3-inch tab to both the top and the bottom of your handle. Weld the tabs, both top and bottom, on opposite sides of the pipe.
The Impact Area
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The top of the post driver is capped with a minimum of 1/2 inch thick steel plate. Weld a circle onto the top of the pipe. This is what will actually impact the top of the post and drive it into the ground. The heavier gauge the plate is, the easier it will be to drive the post into the ground, but the more effort it will take to lift the driver.
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Homemade Post Driver
It is relatively simple to make a homemade post driver. It is basically a piece of pipe that slides up and down the post, two handles to hold on to, and a heavy steel plate at the top of the pipe to drive the post into the ground. To use a homemade post driver, insert the post inside the pipe, then lift the driver up the post towards the top. As you let the driver fall, or pull downwards, the driver will fall down onto the top of the post, effectively forcing the post into the ground.