I'd find the sender for the light. Should be a low pressure sender fitted in the lower part of the pump body... or so I would expect it to be. Remove the wire... then see if the light still glows. If it does... probably a ground/short on the wire. Otherwise you have either a low pressure situation or a bad sender. Either one warrants a removal of the sender and install a manual pressure gauge for inspection. Should make 160-180 psi at a fast idle with warm oil.
Beyond that.... there may be a suction strainer in the rear part of the pump. I'm not sure on that tractor. Changing the main filter will have no effect on that part of the hydraulic system... but it's not a bad idea anyway. I'd suggest that you not use the tractor until you find out what's wrong. Low pressure will destroy the dual power or PTO in a fairly short period of time...
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Today's Featured Article - Talk of the Town: The Saga of Grandpa's Tractor - by The following saga is from the Tractor Talk Discussion Forum. Someone. The saga starts with the following message: Hey guys I have a decision to make. I know what you all will probably suggest and it will probably agree with me way down inside, but here it is. I have a picture blown up and framed in my "tractor room" of a Farmall M. It was my Grandpa's tractor, of which whom I never got to meet. He froze to death getting this tractor out of the barn to pull a truck out of the ditch before I was born. Anyway my dad and aunt had to sell it at the auction,
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