1. When in the judgment of the state veterinarian, the slaughter method is the only means of controlling and eradicating a highly contagious or communicable or infectious disease of livestock, animals or birds, or when under cooperative agreements with the United States Department of Agriculture the slaughter method is required, notice shall be given to the owner or owners of the livestock exposed to or infected with the disease. Such livestock or birds or animals shall then be indemnified within the limits of appropriation, at a rate fixed by the director of the department of agriculture, except that such rate for ostriches and emu shall not exceed eight hundred dollars, and then destroyed under the supervision of a representative of the department or by the United States Department of Agriculture as the state veterinarian may elect, except that when exposed or infected or recovered livestock, animals and birds in such herds or flocks can be utilized for food purposes, the state veterinarian in his discretion may permit such animals, livestock or birds to be transported on permit and under supervision of a representative of the department to a slaughter establishment operating under the federal meat inspection service or under an approved municipal meat inspection service.

2. A careful account of the cost of the killing, burying and also the cleaning and disinfection of premises shall be kept by the representative of the department or a representative of the United States Department of Agriculture and the cost thereof shall be paid by the state when such cost is approved by the director.