Check continuity from the sending unit wire to where it connects on the back of the gauge. It should show pretty much no resistance. Any reading under 1 ohm is fine...
Next, disconnect the sending wire from the back of the gauge and sending unit and check the resistance to ground. You should not get any reading between the wire and ground if both ends are disconnected. If you do get a reading, you have a short someplace. It could be that the sending wire is rubbing someplace where when it heats up it makes better contact with the engine block or perhaps the exhaust manifold. Carefully check to see if the wire has rubbed on a sharp casting line or maybe if it turns corner on the back of the cylinder head and has rubbed on the sharp edge. Also check for any sharp edges where it might be contacting through the firewall or up under the dash.
If the sending wire tests good end to end, and is not shorted to ground, then I would be looking for a bad ground some other place. Figure out where the gauge is picking up its ground. Check the resistance from the gauge case to the negative terminal on the battery. If it's not less than 1 ohm, then check the battery cable, where it attaches to the engine or frame, the bolts that hold the steering, and finally where they attach the instrument cluster. You have to follow the whole path looking for corrosion. It might be that you will need to run a separate ground to the cluster if the way that Kubota did it has failed. Essentially, just follow the path that the ground would need to take to get to the gauge.
Finally, the only other thought that comes to mind would be a bad gauge. If the windings in the gauge itself are heating up, it could be that the resistance is changing and the gauge reading is changing as a result. If this is the case, one would be able to replicate the problem by warming up the tractor, getting a resistance reading from the sending unit when the tractor is hot, buying the correct size resistor to mimic the hot reading, and hooking the resistor from the sending unit wire to ground (disconnect the sending unit). Turn on the key and just let it sit not running. The gauge should read the same as when the tractor is hot (or pretty close). Simply leave the key in the on position for roughly as long as it takes for the problem to occur. If it happens as it's sitting there not running, then you know you've got a bad gauge.
The infrared thermometers have really come down in price and are very handy to have around.
Hope this helps!
Steve