First Lugging is a term that needs more definition than I have seen for Diesels. In the good ol gasoline engine where there was low torque and low
hp at low
rpm and high torque at mid
rpm and high
hp at high
rpm, you could easily get in a position where pushing on the accelerator did nothing. Pulling in this condition resulted in a retarted spark operation and the engine quickly overheated.
The normal way of operating tractors is to run in as high of a gear as is practical to pull the load and to back off the
rpm where you can to minimize fuel consumption. This has limits if you are using the
PTO and need to keep a constant
rpm for the implements.
I suspect the engine is just running out of power and will drop off a little in
rpm to get more torque to take you up the hill. This should not hurt anything if all you lose is 10% or so. More than that, just down shift and go on. The main gauge to watch is the temperature gauge If the temperature gauge starts climbing above normal, then you definately need to be running in a lower gear. I suspect you are running a hydro and the slippage builds quite a bit of heat and will quickly show up on the hydraulic lines (see if you can touch them - they get pretty hot) and in a couple of minutes in the water temperature gauge.
Since it is a Kubota, also stare hard at the oil pressure gauge [img]/w3tcompact/icons/wink.gif[/img].