8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 18, 2008

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

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

Terra Centre 600 Fourth Street, P.O. Box 6000 Sioux City, Iowa	51102-6000
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (712) 277-1340

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 8.01 OTHER EVENTS

On December 18, 2008, Terra Industries Inc. (“Terra”) announced that GrowHow UK Ltd. (“GrowHow”), a joint venture in which Terra holds a 50% stake, on December 17, 2008, temporarily idled ammonium nitrate fertilizer production at the Billingham UK facility to manage inventories. In addition, effective December 27, 2008, it will temporarily idle ammonium nitrate fertilizer production at its Ince UK facility to manage inventories and effective January 2, 2009, it will idle ammonia production at Ince in anticipation of a mid-January maintenance turnaround. A copy of the press release is filed herewith as Exhibit 99.1.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibit

99.1 Press Release issued December 18, 2008, announcing that GrowHow UK Ltd. has and will idle certain production.

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/ John W. Huey

John W. Huey
Vice President, General Counsel and
Corporate Secretary

Date: December 18, 2008

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release issued December 18, 2008, announcing that GrowHow UK Ltd. has and will idle certain production.

EX-99.1

Terra’s UK joint venture temporarily idles additional production

Sioux City, Iowa (December 18, 2008)—Terra Industries Inc. (NYSE symbol: TRA) (Terra) announces that GrowHow UK Ltd. (GrowHow), a joint venture in which Terra holds a 50% stake, is idling production in addition to that of the Billingham ammonia plant, as announced on Dec. 8, 2008.

Effective Dec. 17, 2008, GrowHow temporarily idled ammonium nitrate fertilizer production at the Billingham facility to manage inventories.

Effective Dec. 27, 2008, GrowHow will temporarily idle ammonium nitrate fertilizer production at the Ince facility to manage inventories and effective Jan. 2, 2009, will idle ammonia production at Ince in anticipation of a mid-January maintenance turnaround.

The joint venture’s two manufacturing facilities produce 880,000 tons of ammonia, 1,100,000 tons of ammonium nitrate fertilizer and 600,000 tons of fertilizer compounds per year.

GrowHow has adequate inventory to fulfill all current orders. The company’s management will continue to monitor the market to determine when it is prudent to resume production.

About Terra
Terra Industries Inc., with 2007 revenues of $2.4 billion, is a leading international producer of nitrogen products.

Forward-looking statement
Certain statements in this new release may constitute “forward-looking” statements within the meaning of the Private Litigation Reform Act of 1995. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made and Terra undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Words such as “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” and similar expressions are used to identify these forward-looking statements. These include, among others, statements relating to:

• financial markets,

• general economic conditions within the agricultural industry,

• competitive factors and price changes (principally, sales prices of nitrogen and methanol products and natural gas costs),

• product mix,

• the seasonality of demand patterns,

• weather conditions,

• environmental and other government regulation, and

• agricultural regulations.

Additional information as to these factors can be found in Terra’s 2007 Annual Report/10-K, in the section entitled “Business,” “Legal Proceedings,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in the Notes to the consolidated financial statements.

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Note: Terra Industries’ news announcements are also available on its Web site, www.terraindustries.com.