Water will condense in the crankcase and freeze in the oil pump, it is a problem with many old two cylinders. To Prevent damage to the cam and oil pump, Deere designed a breakable coupling driving the pump if it freezes. This is likely what broke, resulting in no oil pressure. I would remove the rod caps and take a look at the babbit and the journals. If you are real lucky, only re-babbiting and polishing the crank may fix it. I have tractors that have run for 35 years with .002-.003 out of round rod journals and babbit bearings. Newer type insert bearings won't tolerate that much. You are probably in for a teardown, but I sure wouldn't think about scrapping anything.
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Today's Featured Article - Tractor Profile: Farmall M - by Staff. H so that mountable implements were interchaneable. The Farmall M was most popular with large-acreage row-crop farmers. It was powered by either a high-compression gas engine or a distillate version with lower compression. Options included the Lift-All hydraulic system, a belt pulley, PTO, rubber tires, starter, lights and a swinging drawbar. It could be ordered in the high-crop, wide-front or tricycle configurations. The high-crop version was called a Model MV.
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