You have some rule outs before doing anything to the engine. Hard starts cold and a 'supposedly' lower compression reading on the middle cylinder are not enough to get me convinced your engine needs an overhaul.
As said by Ritcheyvs, what readings are we looking at? How long has this issue been apparent? Do you have any smoke and if so what color and when? Cold, hot, idling, working hard?
I'd want an oil analysis done ASAP as one rule out. The results can tell what is in your oil which can show metal, coolant, etc.
Do you use diesel oil specked to your machine? Do you change both the oil AND oil filter at specified intervals?
Have you tested your glow plugs for resistance on each plug to make sure all are working? Do you use any fuel additives?
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