They do go pretty low, depends a bit on the tires on how close to the ground they go. No, there isn't really an adjustment.
That being said, you should have full control over the position of the arms in position control mode. Starting with the arms all the way down you should be able to move the touch control and set them at any particular level along the way. If you can do this, then the cam and follower pin inside the cover may be worn or out of adjustment.
In draft mode you will not be able to control the position of the arms as that is not what is intended. Moving the touch control off the top stop should drop the arms all the way down. In draft mode the touch control works to set the amount of "load" the implement exerts on the tractor. The tractor may raise and lower the implement to keep that same amount of "pull" on the tractor. It gets this input from the pushback on the center link.
So, long winded explanation, but if you cannot control your arms in their full range with position control, time to pull the cover.
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Today's Featured Article - Madison's County - by Anthony West. Philip Madison has been a good friend of mine for quite some time. He has patiently suffered my incessant chit chat on the subject of tractors for longer than I care to remember, and on many occasions he has put himself out, dropped what ever it was he was doing, to come and lend a hand cranking handles, or loading a find onto a trailer. Although he himself has never actually owned or restored a tractor, he was always enthusiastic and always around helping with other peoples projects.
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