There's no valve on the breather.
It's a tube pushed into the axle housing, then a piece of rubber tubing loops up & around, just goes to, well nothing.
Water should be kept below the axle anyway. The cooling fan and belt are suceptible to damage due to deep water, and yes I've seen it happen. On an L33/3901, if you have insurance go for it, if not, be prepared...if that engine gets hurt and needs to be replaced, it's almost money ahead to replace the tractor in it's entirety....which is why the one I messed with got totaled by the insurance company.