Milky oil is caused by 2 things...water/antifreeze in it or air.May have a suction leak to the pump where oil is drawn from causing air to enter oil & then getting pressurized.If air it will have to coming from the suction side only as pressure side will show a external leak somewhere.One other cause is a semi plugged oil filter which causes pump to cavitate & foam up your oil too.Hope this helps some as I am unfamiliar with your unit but any of the above will cause same condition in an automobile.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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