Latex paint Contains VOC's (Volatile Organic Compounds) which can be
irritating to people and pets.  If the paint is a latex enamel it may
contain fungicides in addition to ammonia which can cause an form of
bronchitis.  If the ventilation is good and the ferts can't actually
ingest the paint I'd say you're okay but to watch for respitory distress,
runny nose and watery eyes.  Low quality brands such as Glidden or Dutch
Boy tend to be high on chemicals that are nasty and low on quality while
high quality brands like Sherwin WIlliams, Duron, Porter, Kelly-Moore,
and Benjamin Moore even offer Latex paints with zero VOC's.
 
I have lots of experience with dogs and I can tell you that your dog can
be trained to not attack small animals.  It could be an expensive and
lengthy training experience but it can be done.  My father was able to
get his German Shorthair Pointer to woo on a clamn flat while the tide
was coming in, the dog would only raise his head as the water got higher.
When he was given the command he'd come run out of the Atlantic but not
shake off until given a command.  It took tons of time and training but
he could get that dog to do just about anything.
[Posted in FML issue 4120]