1. The department of agriculture may pay, within the limit of its appropriation, an indemnity in the manner and in the amounts herein set forth to the owner of cattle who carries on an approved tuberculosis control program in his herd. The indemnity shall reimburse the owner for a part of the loss suffered by him in disposing of the cattle exposed to, infected with, or reacting to, a test for tuberculosis.

2. The value of any cattle on which an indemnity is sought by the owner shall not exceed an amount recognized by the state veterinarian and the owner as just compensation in relation to current market conditions, breeding value and other criteria of valuation for the animal destroyed. Each animal destroyed shall be identified separately on the appraisement form. Proper appraisement forms shall be completed and one copy each shall be sent to the department, retained by the duly authorized agent, and retained by the owner.

3. Any cattle on which an indemnity is sought shall be kept in isolation and within fifteen days of identification or branding shall be sold for slaughter. A report of the net proceeds, being the total amount received less expense of transportation, commissions, and other expenses of the sale, derived from the sale of the infected or reactor cattle shall be delivered by the owner to the department. The department shall determine the owner’s loss by deducting the amount of the net proceeds so derived by the sale of the cattle for slaughter from the appraised value.

4. The indemnity to be paid by the department shall be an amount determined by the state veterinarian but shall not exceed the breeding value of the animal. The department shall certify to the state commissioner of administration the amount to be paid by the department. This amount constitutes a legal claim against the state within the limits of available appropriations, and the commissioner of administration shall approve the same and cause the same to be paid by issuing his warrant on the state treasurer therefor in payment to the owner.

5. Indemnity for animals slaughtered as reactors or as infected cattle shall only be paid to the owner, provided he cooperates with the department as requested by the state veterinarian or his agent in carrying out recommended practices in eradicating the disease from his animals. No indemnity shall be paid if the state veterinarian determines the animal does not qualify for indemnity or the owner is ineligible for payments.