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somehow you have got water in the crankcase. this can happen if tractor is parked outside in rain.the raqin can enter thru upright exhaust and seep into oil pan. dump the oil and put new oil and oil filters in. the sludge on oil filler cap is condensation of oil and water created when engine is at running temp. from the water in the oil pan. changing oil will remedy this.as you said no running problems and clear exhaust, this is not a head gasket problem a hint for you,is to place and old can upside down over the exhaust when parked out in the weather.this will keep moisture and rain out of the engine,not to mention the blck crap that will shoot out when you start engine

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16y ago
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Q: Is this head gasket Ford 1710 tractor white sludge in oil filler cap oil not frothy or milky 4-5 cm layer of watery sludge below oil in crankcase runs very well clear exhaust plume?
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