You seem to have described two problems, the oil is aerated and the oil reads low on the dipstick. If the oil is pumped full of bubbles the volume should increase and read high on the dipstick. Perhaps the oil is not draining back since it is so aerated - don't know - but it seems you would see oil coming out of the breather.
You have not mentioned how the oil pressure is maintained. Might want to mount a good oil pressure gauge on the tractor you can monitor while it is running. If the oil presure is maintained it suggests the pump is not sucking air and has sufficient oil in the sump.
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Today's Featured Article - Grain Threshing in the Early 40's - by Jerry D. Coleman. How many of you can sit there and say that you have plowed with a mule? Well I would say not many, but maybe a few. This story is about the day my Grandfather Brown (true name) decided along with my parents to purchase a new Ford tractor. It wasn't really new except to us. The year was about 1967 and my father found a good used Ford 601 tractor to use on the farm instead of "Bob", our old mule. Now my grandfather had had this mule since the mid 40's and he was getting some age on him. S
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