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                       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): December 31, 2003


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



           Maryland                    1-8520                    52-1145429
(State or other jurisdiction    (Commission File Number)       (IRS Employer
      of incorporation)                                      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)

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ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS.

(c)      Exhibits

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

         99.1                    Press Release dated January 29, 2004 announcing
                                 fourth quarter 2003 earnings by Terra
                                 Industries Inc.

ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

                  On January 29, 2004, Terra Industries issued a press release
setting forth Terra Industries Inc.'s fourth 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: January 29, 2004