(Solved) Why Does My John Deere E110 Tractor Smoke When I Start It?

It blew smoke from the first day that I bought it. On the first service call from my dealer, I asked why it smokes on startup. I was told that they do that. I did the second service on it at 80 hours. It still smokes on startup for 1-2 minutes. It does not burn oil. The liquid you see coming from the welds appears to be water. Is this a moisture problem? Is this common with John Deere tractors?

After removing the valve cover, cleaning it, and resealing using "Permatex 82180 Ultra Black Maximum Oil Resistance RTV Silicone Gasket Maker", the tractor no longer smokes. I've started it twice since the fix and there is still a residual residue that seeps from the top of the carburetor that burns off, but it was barely noticeable.