Alright, after a little off topic talk here is what I know so far. Remember the original questions was is this something that I need to worry about causing problems down the road and what should I expect from my dealer. So my dealer said he would pass it along to the sales and service rep at Kubota and see what they think and have it documented. That is as far as he went. I just politely thanked him and asked that he let me know what the rep responds back to him with. The overwhelming thoughts so far by the board here seam to be that this poses no future problems with the arm bending, failing, or getting out of alignment which is good. If it never causes me any trouble than it is not a problem.
Extra - read only if you like-it is also kind of an introduction. To address some of the other comments, I do understand it is a tractor and it is going to get used to do work. I do not really care about the problem if it is only cosmetic and will not cause a problem like some surface rust or paint chips but this is a dent that does structurally weaken that arm somewhat. How much is really the question. If the arm is overbuilt and a different component in the system is weaker the arm should never fail but if the loader arm is the weakest link in the system it could be the part to fail.
I do not think it is a dent from forming the metal, it is more like a crease where something hit the arm and it would have had to hit pretty hard in that area to cause it dent like it did as the metal there is close to an 1/8 inch thick.
My introduction and for those that have maybe speculated what my back ground is and my understanding of mechanical objects, I actually am a teacher at a high school. I work with metal, wood, and engines daily. I teach quite a variety of subjects but started almost 25 years ago teaching physics and chemistry, so I do understand forces and how tension, compression, torsion and shear forces will work on the loader. I no longer teach chemistry but I am still the physics teacher at the school today. Instead of chemistry I now teach tech ed classes. About 10 years ago the school was having a hard time finding a tech ed teacher to stay for more than a year so I offered to go back and get the appropriate license. I have always been pretty handy and taught a science class where we built a high mileage vehicle (a low friction aerodynamic go-cart) each year to compete against other schools for the most fuel efficient vehicle, so I was already teaching about engines and how to fabricate a chassis from metal. To get even more ready for my new classes, I spent the next year or so working weekends with a guy that rebuilds race engines, took a few welding classes at the local tech college, and spent a summer learning how to run CNC equipment like a router, plasma, and mill. I now teach small engines, 2 different woodworking classes, building construction, 2 cnc classes, along with physics, and do a lot of metal fabrication for projects that come up around the school and in town such as fencing, railings, signs, and other decorative plasma cut art. It is quite a fun job and I get help students build a ton of different things everyday. The only problem with the job is that I have so many hats to wear it kind of makes me have to be a jack of all trades so you never get to be a master of one. If I had to go back and do it all over again I would have just went into mechanical engineering like a lot of my fellow physics students did. Then I might have been able to afford a little bigger tractor like an LX2610, maybe when I retire. But then again, teaching does have three big plusses: June, July, and August.