"What could be the problem and where to look next?"
Agree with Brendon-KS that "the problem could be the relief valve".
Take a look at the TOUCH-O-MATIC CHECK VALVE HOUSING ASSEMBLY diagram below.
Note the Relief Valve (Key 9).
Also note the Lock Screw (Key 6), Adjusting Screw (Key 4), and Spring (Key 7),
Take a look at the Touch-O-Matic Relief Valve Operation illustration below.
Note the relief valve 19 is open open allowing oil to return to the reservoir.
The relief valve must be closed in order for the drawbar arms to raise.
You might consider reviewing the Adjust Pressure of Touch-O-Matic System topic on page 180-15-13 in the service manual.
Removing the lock screw and turning the adjusting screw in (clockwise) will tighten the spring tension on the relief valve, but please read the above mentioned topic first.
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Today's Featured Article - Diagnosing Engine Difficulty - Diesel Tractors - by Staff. The following suggestions are listed for your assistance. You can make simple adjustments on your tractor that will improve its operation and save you the time and expense of hiring someone to do it for you. Always make one adjustment at a time, and if the adjustment made does not improve the condition, return to the original setting before proceeding to the next adjustment. Hard Starting Cold air temperatures. Insufficient fuel.
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