MNBobcat
From reading your other post in JD forum I determined your 3020 is a '64-'68 model which didn't have the option of PBY but could be plumbed by teeing into hyd supply line by brake valve and returning oil to ether rockshaft return line or ported hyd filter cover as shown in attached photos.
I think that has already been done when the control valve on the fender was added for the front end loader. I have the line coming off the hydraulic filter cover that you show in the first photo.
Redneck answered my question which was trying to get my head around how you could dead-end the hydraulic flow and not have problems. I was thinking about it akin to having your well pump running with nowhere for the water to go. Usually that is bad for a pump and builds heat and pressure.
I do need to figure out some way to increase the lift capacity on the front end loader. Don't know if that means more hydraulic pressure and/or different cylinders. I tried to lift 2550 pounds yesterday off a flat bed with no luck. Once the weight was on the ground I could lift it a bit but higher up it wouldn't lift it.