Water vapor is a normal byproduct of the combustion is the engine. A cool muffler allows the vapor to condense where it mixes with the soot from previous use.
If these tractors were still being pulled like they were originally used there would not be the buildup of soot in the muffler so the water droplets would not be as noticeable.
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Today's Featured Article - The Tractor Parade: Story of a Case SC - by Bernie DeLon. On a early fall morning back in 1994, I opened the newspaper and happened to spy an article about a local antique tractor club having their annual show that weekend.
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