Hoghead, judging from where you are taking your readings you would be measuring "system current", I have'nt had a need to measure what the solenoid draws but I would'nt be suprised if it pulls 3.5 amps. By the way, initial engagement of that solenoid is pulled during starter engagement (that's why it has 3 wires, in case you were wondering). It needs the extra amperage tapped off of the starter to initially engage.
Now you say "charge" never drops off. Try taking the reading directly off of the battery. Without looking at your wiring diagram, I'm going to say that the lead that comes off of the starter main power lead goes to the ignition switch (B terminal) when the key is switched to the run position battery power runs to the fuel solenoid, (but does not engage the solenoid, hold power only) completes the circuit from the DC output lead from the regulator back to the battery through the ignition switch. Completes the circuit for your lights, up to the light switch (if applicable) and makes power available for the starter solenoid, glow plugs and PTO clutch. Probably gets your hour meter turning as well. (which would be a very minor load, most likely miliamps). So anyway that is how the out put from the regulator (in the case of the Dynamo, rectifier/regulator) gets back to the battery as well as the other components in the system. Now that we've been talking about this a bit, I remember the Bobcat Jaguars with a Mitsubishi deisel had a ballast resistor installed. Now I wonder if Woods left this component out of the system. What do you think George? Have a ballast resistor between the starter lead and the B post of the ignition switch, could solve the problem? That would allow the regulator to take care of the system loads due to path of least resistence and any "overflow" would push past the resistor to get to the battery.