That may be what's happening, but it shouldn't happen. We used to work the snot out of our 856 pulling a 16' disk and 16' drag in tandem along with a 16' length of well casing that would load up with dirt. Never spilled a drop of water.
Not being a diesel expert, would it be possible that this is a head gasket problem even though you aren't finding any oil in the water, or water in the oil? Could the head gasket have failed such that cylinder pressure is leaking straight into the water jacket?
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Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
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