My guess that one of the positions forces exhaust gas thru/around the air inlet mainfold which helps evaporate/mix the gas better in cold weather. This would hurt horsepower in warm weather. I would assume the hot position is for warm weather and cold for winter, but it might be just the opposite, hot is to warm the manifold for cold weather and cold is to not heat the inlet air manifold during the summer. If someone doesn't definitely give the answer, I would start the tractor and see which position makes the manifold the warmest.
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