Well I figured I would put my 2 cents in, I am a diesel Mechanic by trade. By not seeing, hearing, and only going by what you have wrote, he spun a rod bearing. Probably wiped the crank out on that on journal. Engine will probably have to come out. I am not sure about your tractor but usually you cant get the pan down because there isn't enough room to remove it between the axle and engine block. If its a spun bearing then of course the crank will have to be turned and you will need 1 new rod. Usually machine shops now adays will not turn just 1 journal, they will turn all rod journals, at least the respected ones around here. There have been to many times in the past where 1 journal had been turned, the mechanic didn't pay attention, and puts standard bearings back on a journal that had been turned. If the tractor has low hours on it like you say, I wouldn't be to scared of other problems. I have done 1 engine with 150 hors on it or so and the same thing happened. I had the crank turned, resealed the engine (head, front and rear mains, and misc gaskets) still running to this day. Hopefully the damage was minor and nothing else was hurt, but you are not going to know until you dig into it. I would talk to you Dad and see what he wants, then check to see if the mower you want will work with the loader was on it. If ever thing else seems like it might work, start calling around to see what parts are going to cost you. But just remember, if you were a customer of mine and you brought that tractor to my shop, I would tell you its probably a rod bearing, but I cant tell you for sure until I start tearing into it. Another thing, if he put oil in it after it ran out, is that the same oil that has been in it all this time?? If it is, drain it in a clean pan and check for metal, usually it will be flakey and glitter. Like I said, just my 2 cents.
Dennis