Long 350--possible water in transmission?

My Long 350 transmission fluid is milky when I pull the dipstick out to check the level. Sounds to me like it may have gotten water in it. Any ideas about where it might have gotten in? Any help appreciated. Thanks.
 
It may be condensation. Or if the tractor sits outside, rainwater can run down the shift lever past the seal into the tranny.
 

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