Sounds like a stuck, or broken oil ring. Could possibly even be a worn valve guide. Have you done a compression test..?
Sounds like you're going to have to pull the head, and take a look. If the ring broke, hopefully it did not score the cylinder. If it's just stuck, I have freed them up, by letting the piston set in some solvent for a few days. I've also had them break, doing the same thing...
Check the other cylinders for wear too. If you can hook a fingernail at the top of the sleeve, where the top ring stops, it may be due for an overhaul. But thwen I've seen guys in the old tractor club here, just re-ring them, but they were just for show, and got by.
If you do decide to re-ring it, get a soft set of rings, like Hastings. Better for the rings to wear, instead of the sleeve.
Apparently sleeve and piston kits for these a few, and far between. I did find one set on the net, and that kit was $595.00 + shipping. John Saeli also shows them on his site, but no price.