--------------------------------------------------------------------------------
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                    FORM 8-K


                CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

         Date of report (Date of earliest event reported): July 31, 2003


                              TERRA INDUSTRIES INC.
             (Exact name of registrant as specified in its charter)



             Maryland                      1-8520              52-1145429
  (State or other jurisdiction of     (Commission File       (IRS Employer
          incorporation)                   Number)          Identification No.)

                                  Terra Centre
                        600 Fourth Street, P.O. Box 6000
                           Sioux City, Iowa 51102-6000
                                 (712) 277-1340
          (Address of Principal Executive Offices, including Zip Code)
              (Registrant's Telephone Number, Including Area Code)
--------------------------------------------------------------------------------







ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS.

         (c)      Exhibits

                  Exhibit Number    Description
                  --------------    -----------

                  99.1              Press Release dated July 31, 2003 announcing
                                    second  quarter   2003  earnings   by  Terra
                                    Industries Inc.

ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS.

                  On July 31,  2003,  Terra  Industries  issued a press  release
setting forth Terra  Industries  Inc.'s second quarter 2003 earnings.  A copy of
the press release is filed  herewith as Exhibit 99.1 and is hereby  incorporated
by reference.


                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended,  the  Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

                                                 TERRA INDUSTRIES INC.


                                                 /s/ Mark A. Kalafut
                                                 -------------------------------
                                                 Mark A. Kalafut
                                                 Vice President, General Counsel
                                                 and Corporate Secretary


Date: July 31, 2003