There are several things that could be wrong. The steering valve is making noise because it has air in it. First drain the hydraulic oil and check the sump screen. If the brakes have came apart the material could have the screen plugged. This would starve the main pump. The brakes would need to be repaired and the hydraulic system flushed. Second: your oil is milky. That could be water or air bubbles in it. Take a sample of the oil and place it in a clear jar. You can let it set for several days and it will separate or put it in a pan of boiling water it will separate fast that way. If there is water in it you will see it just like in a sediment bowl. If the oil clears up with, no water, then it just had air bubbles in it. If water change the oil and filter and it should get better. Air is more likely, the steering valve has an internal high pressure leak. To help more I need to know if your system is open or close center. 2040s where one of the few tractors John Deere made both ways depending on the years.
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Today's Featured Article - 12-Volt Conversions for 4-Cylinder Ford 2000 & 4000 Tractors - by Tommy Duvall. After two summers of having to park my old 1964 model 4000 gas 4 cyl. on a hill just in case the 6 volt system, for whatever reason, would not crank her, I decided to try the 12 volt conversion. After some research of convert or not, I decided to go ahead, the main reason being that this tractor was a working tractor, not a show tractor (yet). I did keep everything I replaced for the day I do want to restore her to showroom condition.
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