Water can get in if it's stored outside, and it will emulsify in the oil. You can get some of it out, but the majority will be held in suspension.
If it's antifreeze, is there a hydraulic oil cooler? It could be leaking, same thing, the antifreeze will mix with the oil and be held in suspension.
Once you find the source, drain it best you can, leave it draining over night. Then do a partial fill, cheap stuff will do, run through all the motions, drain it again. If there is a filter, change it, then fill it with the good oil. It may still be a little milky, but will clear up as the water boils off.
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Today's Featured Article - The 8N and the Fox - by Zane Sherman. Dec. 13 1998, Renfroe, Alabama. Last niht I dreamed about the day that I plowed the field of about 10 acres over on what Jimmy and Dandy called the Ledbetter field. I was driving the 1948 8N Ford tractor that Jimmy bought in 48 new This was prebably in about 1951 and maybe even befor the house was built. This would have made me to be about16 years old and I drove the tractor for nothing and would have paid to drive it if I had had any money which I didn't, but neit
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