My 40D did the same thing until I added cardboard to the radiator. I had a Ford 1720, which is the same line of engines, and it did the exact same thing. It never came up in temp at all unless I worked it extremely hard in the winter, and even then the needle just come off of the bottom.
For both tractors I made a piece of cardboard slightly larger than the radiator. On the 1720 I only had one hole in the middle because the cardboard didn't fit tight to the radiator because there was a filter screen in front of the radiator and this allowed the are to distribute a little behind the hole. However, on the 40D I cut a small hole in the middle and 4 more in each corner. I put the 4 in the corners because along the sides, with the cardboard not tight to the radiator coils (it is tight to the housing) there is a little opportunity for the air to distribute. Otherwise, if you only put a hole in the middle, the cardboard is tight to the coils and the radiator seemed to have trouble doing any cooling when needed. Good luck. I think this should work for you.
I've also added fine screens to the front of both the radiator and hydro cooling coil to keep junk from getting stuck in the radiator and cooler throughout the year.