Actually, I rather doubt the clutch would slip due to a leaking rear main seal. As with brakes and a leaking brake cylinder, the symptoms are usually grabbing rather than slipping.
I think Reed may be on the right track. The YM1700 engine is probably the same design as most of the old 2cyl Yanmars. The crank shaft main bearings (there are only 2) are at the front and rear of the engine. They are both circular, not split bearings. The front one is pressed into the block. The rear is pressed into a housing that bolts to the rear of the block. There is an o-ring and a gasket that seal this housing to the block. It could be any one of the three leaking - crank seal, o-ring, or gasket.
If you split the tractor and remove the flywheel you will be able to see the area. If you remove the housing, be very careful as the housing supports the crankshaft. You will probably need to support the back end of the crank by removing the oil pan and putting something under the rear pistion rod, or the center of the crank.
I know splitting the tractor seems like a big job, but just take is slowly and you should be OK. One trick I found useful is unbolting the hydraulic pump from the engine before splitting the tractor. This allows the pump to remain with the rear of the tractor, and you don't have to open the hydraulic system.
If you don't need your tractor for snow removal in the winter, then this is a good winter project. Good luck, and don't forget to post with questions if you end up splitting the tractor. All the guys here with experience will be more than happy to help you out with tips and instructions.