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 - George's Fordson Major - by Anthony West (UK). This is a bit of a technical info to add on to the article about George's Major in the "A Towny Goes Plowing" article. George bought his Major from a an implement sale about 18 years ago for £200.00. There is no known history regarding its origins or what service it had done, but the following work was undertaken by Harold alone to bring it up to show standard. From the engine number, it was found that the major was produced late 19
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