Think of the turbo pushing more fresh air into the combustion chamber than atmospheric pressure alone. It's not free power because the turbo adds exhaust restriction, and the higher the boost pressure the higher the parasitic load but it can easily make up for that. Back in the early 1960s John Deere came out with the 4020 at around 90 HP and IH followed with the 806 at 94 HP (PTO HP that is). Allis-Chalmers had developed a nice 70 or so HP tractor but JD and IH blew it away with the 15 - 20 extra horses, do the manager of engineering, my boss to be, said no problem - we will have our engine plant add a turbo. The Allis-Chalmers 190XT was born. Had power to compete, and was easy to turn up the fuel and get even more power while those poor JD and IH owners were stuck with their naturally aspirated duds. Unfortunately Allis didn't beef up the power train. My boss to be said no problem - the farmers will not invest in larger implements. They will pull their current implements faster (higher gear). The farmers didn't bite - they bought wider implements they could pull at the same speed as before and the Midwest was strewn with broken gears - and my boss to be was relocated from the motherland - West Allis, WI, to Independence, MO, where the CEO would not have to look at him and be reminded. So, turbo on an engine supplies more fresh air that can burn more fuel creating more power without increasing engine size. A 4 cylinder engine can do the work of a 6 or even 8, and since there are fewer pistons rubbing the cylinder walls there is a lot less friction so the engine can be a lot more efficient. Like someone mentioned you also don't lose much power with altitude because in the less dense air the turbo spins faster and stuffs the cylinders with nearly the same fresh air as at sea level. The turbo engine will be more efficient but because it gas more parts it will be less reliable because there is more opportunity to have a bad part and it only takes one. A properly designed turbo engine, however, is every bit as reliable as a naturally aspirated engine if every part is built right. Yes, the oil can "coke" if you shut the engine down immediately after it has been working hard. The turbo likes to have oil feed as it cools but that is not normally a big issue. It's common sense on any engine to let it idle a bit after working hard to let the parts cool evenly. Most of the time I am running the engine slow as I park my tractor so I seldom do I have to idle any length of time.
Larger engines are designed to take more advantage of turbo boost. Our 7720 JD, for instance, is rated at 130 HP at 2100 rpm but by the Nebraska Tractor Test results produced 170 HP when running at 1800 rpm. Lots of available boost, computer monitoring the performance and feeding it all the fuel it can efficiently use until it senses that's enough.
On a CUT I wouldn't buy a turbo tractor just because it has a turbo but remember the company probably used a turbo instead of using a larger, less efficient engine. Kubota engines, for example, has a information on its site for all of its tractor engines so you can compare efficiency between engines. Direct injection is significantly more efficient than indirect injection. Turbo engines running at a specific power level are more efficient than naturally aspirated engines that produce that same power. Lower engine speeds, to a point, are more efficient than high engine speeds. Might be worth taking a look before you buy. They don't state on the engine site that this engine us used on this tractor but by comparing displacement, rated engine speed, and engine configuration it is pretty easy to figure out which engine goes where. Same thing with John Deere - they tend to have even more engine information.