Massey 240 making oil!!!

[Bentrim]

Does the oil smell like diesel fuel and thin? if so it is most likely the diaphram in the lift pump is leaking. It is on the RH side of the engine just blow the head and about 2/3 back on the engine. Should have two fuel lines going to it, from the tank and to the filter. To test remove the nuts (bolts?) securing it to the block and pull the pump out a small amount. Observe the pump as you manually operate it. If it is bad the fuel will run out between the pump and the block. The pump is rebuildable or replaceable. Be aware they are two bolt or four bolt.
If the pump appears to not be leaking the other way fuel can get in the crankcase is thru the drive shaft of the injection pump, which it will need to removed and repaired.
If the oil does not smell like diesel loosen the oil pan drain plug very slowly and watch what leaks out If you have an issue with a cracked head or blown head gasket water will come out first.
Believe you said you had about 1700 hours on it and unless there is damage the engine is just broke in. With oil at proper level there should be very little or no vapors coming out of the breather hose. If you had engine damage or a blown head gasket the engine would be very hard to start and when starting would turn over uneven, with it speeding up for the bad cylinder(s) and slowing down for the good cylinder(s).
That 3.152 engine is a very tough and dependable engine. It was first used in the 135 and subsequent models until MF sold Perkins to Caterpillar.

 

[bgr]

1. If a diesel starts quickly without a long crank, it is usually good for compression and rings and pistons.

2. As others have said, diesel fuel leakage from the supply or injection pump is most likely and first to check.

3. If the tractor has stood for a few years before you bought and started to use it, the supply pump diaphragm was stiff and cracked when you started to flex it again.

4. Sounds like you might have a good one after that fix.