It should be your basic 90w gear oil. Some guys run heavier (a multigrade with the top number like 145) to quiet down noisy gears, but that might be a little stiff up in our colder seasons. But definitely gear oil and not hydraulic fluid.
The white greasy appearance is from water suspended in the oil. A good hard workout or three can evaporate a lot of it out. It sounds like you haven't tried the drain plug yet. Don't be surprised when you do if you get a lot of dry caked sediment out of the bottom. In some it's so bad that you have to dig it out some to even get the oil above it to drain.
If that turns out to be the case, I'll offer a suggestion -- not cheap but worthwhile -- to clean/flush the crud out. That would be to drain about half of your existing oil out and top off with kerosene or diesel fuel and give the tractor a good long run around the block without working it too hard, and use all your gears. If the cake is thick, you might even leave the oil/kerosene concoction to sit in it for a week or so, then give it another run, then drain and refill with new.
Een after that, you may still have some sediment in there taking up space so, short of opening it up to give it a good manual scrubbing, just refill on top of it, and only to the level of the level/check plug. Might save you a few quarts and avoid overfilling which will only cause seals to leak.
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Today's Featured Article - A City Guy's First Tractor - by Fred Hambrecht. After living in apartments in Atlanta for more years than I care to remember, the wife and I decided to move to the country. Humming "Green Acres is the place for me..." we purchased a 29 acre tract about 60 miles south of Atlanta. Next came the house, I could talk about that ordeal for another two weeks... But, I want to talk about my tractor! We didn't even own a lawnmower, and all of a sudden we had enough grass to feed all the starving children of the bovine world. Naturally, I talked
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