Sounds normal to me for non-emission control diesels. I believe that applies to your B26 TLB.
Kubota - and others - did experiment with retarding the injection timing to reduce nitrous oxide output back when NOx was regulated but visible smoke was not yet regulated. Retarding the timing a couple of degrees did reduce NOx, but also increased visible black smoke during RPM changes and when starting. That was all back in the Tier IV Interim period roughly 2007 to 2012- and it led to the full Tier IV "visible smoke" restrictions we have now.
I know about that because we have one of those Interim engines (2008). Works fine, but you do not want to be downwind when it lugs and then revs. Smoky and stinky. I've worried about it carboning up the engine and exhaust, but so far @ 1100 hours of mostly low rpm running the motor runs exactly as it did when new. I do try to change the engine oil and filter every year or two.. Or if hasn't been used much, just the filter. I use name brand full synthetic engine oil, 5w-30 or 5w-40 & Kubota filters.
I'm also pretty picky about the fuel.
rScotty