BigDog's right. You can mount the solenoid anywhere. It's just that the starter is where Dad put one on his Super M, and it's where solenoids are usually mounted on most modern engines.
The arrangement of putting the solenoid on the starter also eliminates quite a bit of battery cable. Shorter cables lose less power, and you'll see a marked improvement in how the tractor turns over if it's a little "iffy" right now.
You may need to drill and tap two holes on the case of the starter, or use a long hose clamp to mount the solenoid to the starter. Dad did his when I was very young, and I don't recall how the holes got in the starter case. I do know you have to be VERY careful when drilling and tapping to keep from nicking the field windings.
With a little creatitivty, you can even hide the solenoid somewhere and use the original starter button to activate the solenoid, so it looks "original." The starter button will last forever activating the solenoid.
Basically, it's:
1. Main battery cable to big terminal on solenoid.
2. Other big terminal on solenoid to starter.
3. Ignition switch to one side of the starter button.
4. Other side of the starter button to the little post on the solenoid.
5. Other little post on the solenoid (usually marked ground, if equipped) to a suitable ground.