PRO FORMA FINANCIAL INFORMATION FOR YEAR ENDED DECEMBER 31, 2006

Exhibit 99.2

Unaudited Pro Forma Consolidated Condensed Financial Information

On September 14, 2007, Terra Industries Inc. (Terra) closed the formation of GrowHow UK Limited, a joint venture between Terra and Kemira GrowHow Oyj (Kemira GrowHow). Pursuant to the joint venture agreement, Terra contributed its United Kingdom subsidiary (Terra Nitrogen (UK) Limited) to the joint venture for a 50% interest in GrowHow UK Limited, and Kemira GrowHow contributed its Kemira GrowHow UK Limited subsidiary for the remaining 50% interest. Terra will account for its investment in GrowHow UK Limited as an equity method investment.

The following unaudited pro forma consolidated condensed financial information reflects Terra’s contribution to the joint venture and the retention of Terra’s 50% equity method investment in the joint venture. The unaudited pro forma financial information does not give effect to Kemira GrowHow’s contribution to the joint venture, or Terra’s 50% of equity earnings from the joint venture because (i) the historical financial statements for the assets contributed to the joint venture by Kemira GrowHow, and consequently the pro forma financial information reflecting such contributed assets, are not yet available and (ii) the joint venture is completing preliminary fair value allocations of its assets and liabilities. Terra will provide additional unaudited pro forma financial information when it becomes available and these fair value allocations have been completed, as provided for by applicable Securities and Exchange Commission regulations. Had Terra contributed these assets at December 31, 2006, Terra would have recorded an equity method investment in GrowHow UK Limited of approximately $288 million. It also does not give effect to any potential fair value adjustments of assets and liabilities contributed by Terra that may be required upon final valuation of the assets, or to any potential costs or savings or other changes that may occur from the transaction and operation of the joint venture. The unaudited pro forma consolidated condensed financial information should be read in conjunction with the audited financial statements of Terra filed on Form 10-K and the unaudited financial statements filed on Form 10-Q.

The unaudited pro forma financial information and accompanying notes are based upon preliminary estimates and assumptions that the management of Terra believes are reasonable and appropriate, however these assumptions may be revised at a later date. The unaudited pro forma consolidated condensed financial information is presented for illustrative purposes only and does not purport to be indicative of the assets, liabilities or operating results that would have actually occurred if the joint venture had been in effect on the date indicated, nor is it necessarily indicative of future operating results of Terra or the joint venture.

Terra Industries Inc.
Unaudited Pro Forma Consolidated Condensed Balance Sheet
for the Twelve Months Ended December 31, 2006
(in thousands)

	Terra Industries Inc.		Unaudited			Pro-Forma
	consolidated		Terra Nitrogen			Terra Industries Inc.
	as reported		UK Ltd			consolidated
ASSETS
Cash	$	179,017	$	(2,356	)	$	176,661
Accounts receivable, net		198,791		(74,572	)		124,219
Inventories		211,017		(72,155	)		138,862
Other current assets		31,680		(7,507	)		24,173
Total current assets		620,505		(156,590	)		463,915
Property, plant and equipment, net		720,897		(223,214	)		497,683
Equity investments (Note A)		164,099		288,257			452,356
Other assets		67,212		(15,361	)		51,851
Total assets	$	1,572,713	$	(106,908	)	$	1,465,805
LIABILITIES
Accounts payable	$	156,493	$	(52,061	)	$	104,432
Customer prepayments		77,091		¯			77,091
Other current liabilities		75,863		(11,689	)		64,174
Total current liabilities		309,447		(63,750	)		245,697
Long-term debt and capital lease obligations		331,300		¯			331,300
Pension liabilities		134,444		(67,266	)		67,178
Other liabilities		104,039		(19,164	)		84,875
Minority interest		94,687		¯			94,687
Total liabilities and minority interest		973,917		(150,180	)		823,737
Total preferred stock and stockholders’ equity		598,796		43,272			642,068
Total liabilities and stockholders’ equity	$	1,572,713	$	(106,908	)	$	1,465,805

See accompanying schedules for footnotes and explanation of pro forma adjustments.

Terra Industries Inc.
Unaudited Pro Forma Consolidated Condensed Statement of Operations
for the Twelve Months Ended December 31, 2006
(in thousands)

	Terra Industries Inc.			Unaudited			Pro-Forma
	consolidated			Terra Nitrogen			Terra Industries Inc.
	as reported			UK Ltd			consolidated
REVENUES
Product revenues	$	1,828,714		$	374,826		$	1,453,888
Other revenues		8,008			¯			8,008
Total revenues		1,836,722			374,826			1,461,896
COSTS AND EXPENSES
Cost of sales		1,732,222			368,522			1,363,700
Selling, general and administrative expense		55,233			9,518			45,715
Equity in loss (earnings) of unconsolidated affiliates		(17,013	)		¯			(17,013	)
Total cost and expenses		1,770,442			378,040			1,392,402
Income (loss) from operations		66,280			(3,214	)		69,494
Interest income		6,457			3,021			3,436
Interest expense		(47,991	)		¯			(47,991	)
Income (loss) before income taxes and minority interest		24,746			(193	)		24,939
Income taxes (provision) benefit		(9,247	)		1,787			(11,034	)
Minority interest		(11,286	)		¯			(11,286	)
Net income		4,213			1,594			2,619
Preferred share dividends		(5,100	)		¯			(5,100	)
Net loss available to common shareholders	$	(887	)	$	1,594		$	(2,481	)

See accompanying schedules for footnotes and explanation of pro forma adjustments.

Terra Nitrogen UK
Unaudited Quarterly Statements of Operations
for the Year Ended December 31, 2006
(in thousands)

	Quarter ended			Quarter ended			Quarter ended			Quarter ended
	March 31, 2006			June 30, 2006			September 30, 2006			December 31, 2006			Total
REVENUES
Total revenues	$	75,233		$	101,140		$	113,949		$	84,504		$	374,826
COSTS AND EXPENSES
Cost of sales		81,921			104,286			109,084			73,231			368,522
Selling, general and administrative expense		2,180			2,345			2,311			2,682			9,518
Total costs and expenses		84,101			106,631			111,395			75,913			378,040
Income (loss) from operations		(8,868	)		(5,491	)		2,554			8,591			(3,214	)
Interest income		633			853			793			742			3,021
Income (loss) before income taxes		(8,235	)		(4,638	)		3,347			9,333			(193	)
Income taxes benefit (expense)		3,004			2,148			(343	)		(3,022	)		1,787
Net income (loss)	$	(5,231	)	$	(2,490	)	$	3,004		$	6,311		$	1,594
SUPPLEMENTAL INFORMATION
Capital expenditures	$	(913	)	$	(1,530	)	$	(840	)	$	(3,185	)	$	(6,468	)
Turnaround expenditures		(6,186	)		(2,964	)		(136	)		(829	)		(10,115	)
Total	$	(7,099	)	$	(4,494	)	$	(976	)	$	(4,014	)	$	(16,583	)
Depreciation and amortization	$	7,139		$	7,307		$	7,415		$	7,676		$	29,537

See accompanying schedules for footnotes and explanation of pro forma adjustments.

Terra Industries Inc.
Notes to Unaudited Pro Forma Adjustments

A.	Terra contributed its Terra Nitrogen (UK) Limited assets and operations for a 50% interest in GrowHow UK Limited. Had Terra contributed these assets and operations at December 31, 2006, Terra would have recorded an equity method investment in GrowHow UK Limited of approximately $288 million.
B.	The following table presents the sales volumes and sales prices associated with the Terra Nitrogen UK Limited manufacturing facilities for the year ended December 31, 2006:

Unaudited
Terra Nitrogen	Quarter ended		Quarter ended		Quarter ended		Quarter ended
UK Ltd	March 31, 2006		June 30, 2006		September 30, 2006		December 31, 2006
(quantities in thousands of tons)
Sales Volumes
Ammonia		63		63		63		80
Ammonium Nitrate		79		180		218		84
Sales Prices
Ammonia	$	342	$	338	$	305	$	308
Ammonium Nitrate		222		230		236		244