With the engine warmed up try this: remove all spark plugs and re-do the compression test only squirt some clean engine oil in each cylinder first, crank the engine to spread the oil around, and repeat the compression test. You did have the throttle wide open to allow maximum air entry, didn't you? If all readings increase 10-2- pounds, this indicates worn rings. With all readings even, the valves are not suspect. To get a more accurate result, purchase a leak-down tester. It will tell you exactly how much leakage your engine has and where it is leaking.
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Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
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