8-K

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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): September 16, 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 5.  OTHER EVENTS.

         On September 16, 2003, Terra Industries Inc. issued the press release
contained in Exhibit 99.1, which is incorporated by reference herein.


ITEM 7.  EXHIBITS

99.1     September 16, 2003 Press Release


                                   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: September 17, 2003

EX-99.1

[logo] TERRA                                               Terra Industries Inc.
                                                               600 Fourth Street
                                 Exhibit 99.1                      P.O. Box 6000
                                                       Sioux City, IA 51102-6000
                                                       Telephone: (712) 277-1340
                                                         Telefax: (712) 277-7383
                                                         www.terraindustries.com
================================================================================
                                      NEWS
================================================================================
For immediate release                                    Contact: Mark Rosenbury
                                                                  (712) 279-8756

                   TERRA PLANS TO RESTART BLYTHEVILLE FACILITY

Sioux City, Iowa (September 16, 2003)--Terra Industries Inc. (NYSE symbol: TRA)
announced plans to resume ammonia and urea production at its Blytheville, Ark.,
facility on or around October 1, 2003. Blytheville suspended production on July
1, 2003 because of continuing high natural gas costs and the seasonal decline in
nitrogen fertilizer demand and prices. Terra recorded a $53.1 million charge
during the 2003 second quarter as an "Impairment of long-lived assets" because
management concluded that future market conditions may not justify the ongoing
investment in maintenance and replacement capital necessary to extend
Blytheville's operations for the remainder of its useful life.

The restart is in response to higher urea selling prices and improved seasonal
demand. Terra expects Blytheville's production to continue through at least
April 30, 2004.

"We are very pleased that urea markets have improved to the point where we can
restart our Blytheville facility and plan on at least seven months of
production," said Terra's President and CEO Michael L. Bennett. Terra Industries
Inc., with 2002 revenues of $1 billion, is a leading international producer of
nitrogen products and methanol.

This news release may contain forward-looking statements, which involve inherent
risks and uncertainties. Statements that are not historical facts, including
statements about Terra Industries Inc.'s beliefs, plans or expectations, are
forward-looking statements. These statements are based on current plans,
estimates and expectations. Actual results may differ materially from those
projected in such forward-looking statements and therefore you should not place
undue reliance on them. A non-exclusive list of the important factors that could
cause actual results to differ materially from those in such forward-looking
statements is set forth in Terra Industries Inc.'s most recent report on Form
10-K and Terra Industries Inc.'s other documents on file with the Securities and
Exchange Commission. Terra Industries Inc. undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result of new
information, future developments or otherwise.

                                      # # #

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