As far as I know, there is no dipstick for the hydraulics on a 400. You fill through the level plug on the side of the steering pedestal until it runs out.
Not sure what dipstick you're checking... Where is it located?
If the 3pt will go up and down through the full stroke, it's not a lack of oil, though.
The 3pt needs at least one 4" diameter x 8" stroke cylinder, or two 3" x 8" cylinders. With that and 750PSI (typical H or M pressure), I've seen them lift Super C-size tractors with the 3pt hitch, many times the weight of one of your bales. If you tried to economize and run a small 2" cylinder, it won't be able to generate the brute force to lift that much weight.
Do the hydraulics squeal when it maxxes out? If you get a squeal noise, with a big enough cylinder, the relief valve needs to be fixed. It should activate at around 1250PSI.
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Today's Featured Article - Ford N-Series Transmission/Hydraulic Fluid - The Full Story - by Llamas. The transmission fluid in an “N”:-series tractor lubricates the transmission, differential, rear wheel bearings, PTO and hydraulic pump drive, and it also cats as the working fluid for the hydraulic lift. In 9N/2N models, it also lubricates the steering sector and shaft system. The owner’s manual for the 9N and 2N models specified the use of only two fluids. They were STRAIGHT MINERAL OIL SAE 90 (above freezing) and
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