Others can confirm, but I think the points should just have barely opened. Static timing is a bit trickier than dynamic, but you can use a timing light and get it right if it has timing marks on the flywheel or the crank pulley.
There is a little dance that gets done on some engines. When the distributor is being pushed in, ofter it rotates due to helical gears. So goal one is to get it such that you get the right gear tooth into the right gear notch such that the rotor button will align with the cap post for the cylinder when the points are open slightly; this is the coarse adjustment. Once done, twisting the distributor so that the points just start to open at cylinder TDC is the intermediate adjustment, and should get the tractor running. The final fine adjustment can be made with a timing light on some (probably most) vehicles...so long as there are timing marks to shine the light on.
Frequently I then do a final check to see where the rotor button lined up with the post for that cylinder, remembering the advance function will make it worse if the rotor is a bit too far past the post.* If that is the problem, I then take great pains to remove the distributor slowly while applying slight back rotation to the rotor cap so I can tell the instant the gears disengage...so I can turn the cap slightly in the direction I need it to go while applying slight down pressure on the distributor....I need to feel it drop into the very next ( or previous) tooth.
I have had some head scratchers where the coarse done right and the fine done right starts to worry me about rotor to post alignment. This is more likely to be a challenge when the distributor lock down bolt goes through a slot on the distributor.
* <= Post
| <=curved rotor button jump point. I try for this:
|
I try for this for static and low speed running:
* | If the rotor turns clockwise.
* |
That way, highest advance may look like this:
* |
* |
I am not a great ASCII artist, and it it looks like insanity on your end, just ignore it.