PRO FORMA FINANCIAL INFORMATION FOR SIX MONTHS ENDED JUNE 30, 2007

Exhibit 99.3

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 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 June 30, 2007, Terra would have recorded an equity method investment in GrowHow UK Limited of approximately $279 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 on 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 Six Months Ended June 30, 2007
(in thousands)

	Terra Industries Inc.		Unaudited			Pro-Forma
	consolidated		Terra Nitrogen			Terra Industries Inc.
	as reported		UK Ltd			consolidated
ASSETS
Cash	$	286,950	$	(10,507	)	$	276,443
Accounts receivable, net		242,415		(69,144	)		173,271
Inventories		169,674		(45,933	)		123,741
Other current assets		23,342		(3,268	)		20,074
Total current assets		722,381		(128,852	)		593,529
Property, plant and equipment, net		702,106		(222,715	)		479,391
Equity investments (Note A)		165,201		278,898			444,099
Other assets		69,378		(22,619	)		46,759
Total assets	$	1,659,066	$	(95,288	)	$	1,563,778
LIABILITIES
Accounts payable	$	143,904	$	(41,771	)	$	102,133
Customer prepayments		25,166		¯			25,166
Other current liabilities		110,390		(3,805	)		106,585
Total current liabilities		279,460		(45,576	)		233,884
Long-term debt and capital lease obligations		330,000		¯			330,000
Pension liabilities		119,407		(67,266	)		52,141
Other liabilities		157,801		(25,718	)		132,083
Minority interest		105,549		¯			105,549
Total liabilities and minority interest		992,217		(138,560	)		853,657
Total preferred stock and stockholders’ equity		666,849		43,272			710,121
Total liabilities and stockholders’ equity	$	1,659,066	$	(95,288	)	$	1,563,778

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

Terra Industries Inc.
Unaudited Pro Forma Consolidated Condensed Statement of Operations
for the Six Months Ended June 30, 2007
(in thousands)

	Terra Industries Inc.			Unaudited			Pro-Forma
	consolidated as			Terra Nitrogen			Terra Industries Inc.
	reported			UK Ltd			consolidated
REVENUES
Product revenues	$	1,190,794		$	211,017		$	979,777
Other revenues		5,307			¯			5,307
Total revenues		1,196,101			211,017			985,084
COSTS AND EXPENSES
Cost of sales		962,219			187,385			774,834
Selling, general and administrative expense		45,251			4,826			40,425
Equity in earnings of unconsolidated affiliates		(4,813	)		¯			(4,813	)
Total cost and expenses		1,002,657			192,211			810,446
Income (loss) from operations		193,444			18,806			174,638
Interest income		6,369			995			5,374
Interest expense		(15,780	)		¯			(15,780	)
Loss on early retirement of debt		(38,836	)		¯			(38,836	)
Income before income taxes and minority interest		145,197			19,801			125,396
Income taxes provision		(44,757	)		(5,623	)		(39,134	)
Minority interest		(22,576	)		¯			(22,576	)
Net income	$	77,864		$	14,178		$	63,686
Preferred share dividends		(2,550	)		¯			(2,550	)
Net loss available to common shareholders	$	75,314		$	14,178		$	61,136

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

Terra Nitrogen UK
Unaudited Quarterly Statements of Operations
for the Six Months Ended June 30, 2007
(in thousands)

	Quarter ended			Quarter ended			Year to Date
	March 31, 2007			June 30, 2007			Total
REVENUES
Total revenues	$	89,867		$	121,150		$	211,017
COSTS AND EXPENSES
Cost of sales		88,712			98,673			187,385
Selling, general and administrative expense		2,159			2,667			4,826
Total costs and expenses		90,871			101,340			192,211
Income (loss) from operations		(1,004	)		19,810			18,806
Interest income		264			731			995
Income (loss) before income taxes		(740	)		20,541			19,801
Income taxes benefit (expense)		774			(6,397	)		(5,623	)
Net income	$	34		$	14,144		$	14,178
SUPPLEMENTAL INFORMATION
Capital expenditures	$	(3,221	)	$	(2,284	)	$	(5,505	)
Turnaround expenditures		(8,326	)		(3,485	)		(11,811	)
Total	$	(11,547	)	$	(5,769	)	$	(17,316	)
Depreciation and amortization	$	7,918		$	8,265		$	16,183

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 June 30, 2007, Terra would have recorded an equity method investment in GrowHow UK Limited of approximately $279 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 June 30, 2007:

Unaudited
Terra Nitrogen	Quarter ended		Quarter ended
UK Ltd	March 31, 2007		June 30, 2007
(quantities in thousands of tons)
Sales Volumes
Ammonia		68		86
Ammonium Nitrate		131		254
Sales Prices
Ammonia	$	321	$	286
Ammonium Nitrate		231		243