Update: The dealer e-mailed me and said the problem is solved and I should have no more issues. They replaced the 160 degree thermostat with a 180 degree as that has worked in the past for poor cab heat issues. According to the dealer with the new thermostat the tractor warmed up in about 10-15 minutes and the heater "would blow you out of the cab". Well, at first I was excited until I realized they tested it in near 50 degree weather so it wasn't a good test. I thanked them and said I would test it on the first cold day.
We got 8 inches of wet heavy snow on Friday so this was my chance to check the "fix" my dealer performed on my tractor.
I started the tractor and drove it out of the barn into the 32 degree weather and waited 20 minutes with the tractor at 1,000 rpm. Unfortunately the results were not the same as the dealer's; the needle on the temp Gage moved about 1/4" from rest but the air temp coming out of the heater ducts was 66 degrees. I ran the tractor up to 2,500 rpm and started blowing snow, after a few minutes the needle moved another 1/8"- 3/16" and the air temp increased to 80 degrees. This is an improvement but certainly not enough if it gets really cold.
Later in the day when the temp moved up to 38-40 degrees the needle moved another 3/16" and the heater air temp increased to around 100 degrees.
It is pretty clear to me that quite simply they have too much capacity to get rid of heat.