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<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND
EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): November 3, 2008</B>

<P style="font-size: 24pt" align="center"><B>TERRA INDUSTRIES
INC.<BR>
</B><FONT style="font-size: 10pt">(Exact name of registrant as
specified in its charter) </FONT>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

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  <TD width="32%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="33%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="32%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>Maryland</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>1-8520</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>52-1145429</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
 </TR>

</TABLE>
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cellpadding="0" width="100%" border="0">

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  <TD width="49%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="49%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>Terra Centre<BR>
600 Fourth
Street, P.O. Box 6000<BR>
Sioux City, Iowa</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>51102-6000</B></TD>
 </TR>
 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(712) 277-1340</B>
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cellpadding="0" width="30%" border="0">

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  <TD width="100%">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-bottom: #000000 1px solid" nowrap><B>&nbsp;</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">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:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


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<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">1
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border="0">

 <TR valign="top">
  <TD align="left" width="9%"><B>ITEM&nbsp;5.02</B></TD>
  <TD width="1%">&nbsp;</TD>
  <TD align="justify"><B>DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS</B></TD>
</TR>
</TABLE>

<P style="font-size: 10pt; text-indent: 8%" align="justify">(c)&nbsp;Effective
November&nbsp;3, 2008, the Board of Directors of Terra Industries Inc. elected
Edward J. Dillon to the position of Vice President and Controller. In this
capacity, Mr.&nbsp;Dillon is responsible for all internal and external
financial reporting, budgeting, analysis and internal accounting controls.
Mr.&nbsp;Dillon, a Certified Public Accountant, earned a B.A. degree in
Accounting from Boston College, Chestnut Hill, Massachusetts in 1990 and joined
Arthur Andersen LLP in New York City. In 1998, he joined the General Electric
Company and served in numerous roles including Finance Manager for the National
Broadcasting Company in New York City, progressing to Global Controller for the
Consumer &amp; Industrial segment in Louisville, Kentucky. He joined INVISTA, a
subsidiary of Koch Industries, Inc. (KII)&nbsp;in 2005 in Wichita, Kansas as
Director of Corporate Finance and in 2007, moved to KII Corporate as Finance
Director.

<P style="font-size: 10pt; text-indent: 8%" align="justify">Mr.&nbsp;Dillon
will be offered an Employment Severance Agreement substantially identical to
those provided other senior officers, except that the term will be for two
(2)&nbsp;years so as to be coterminous with other senior officer agreements.
For a description of the Employment Severance Agreement, see Exhibit&nbsp;10.2
to the Company&#8217;s Current Report on Form 8-K dated October&nbsp;5, 2006.

<P style="font-size: 10pt" align="justify"><B>ITEM 9.01 FINANCIAL STATEMENTS
AND EXHIBITS.</B>

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  <TD nowrap align="left" width="3%">(c)</TD>
  <TD width="1%">&nbsp;</TD>
  <TD>
<DIV style="text-align: justify">Exhibit</DIV>
</TD>
 </TR>

</TABLE>


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  <TD nowrap align="left" width="3%">99.1</TD>
  <TD width="1%">&nbsp;</TD>
  <TD>
<DIV style="text-align: justify">Press Release issued November&nbsp;4, 2008,
announcing the election by the Board of Directors of Terra Industries Inc. of
Edward J. Dillon to the position of Vice President and Controller.</DIV>
</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">2
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<P style="font-size: 10pt" align="center"><B>SIGNATURES</B>

<P style="font-size: 10pt; text-indent: 4%" align="justify">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.

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<TR>
  <TD width="60%">&nbsp;</TD>
  <TD width="40%">&nbsp;</TD>
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<TR valign="bottom">
  <TD>&nbsp;</TD>
  <TD align="left">TERRA INDUSTRIES INC.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
  <TD>&nbsp;</TD>
  <TD align="left" style="border-bottom: 1px solid #000000">/s/ John W. Huey</TD>
</TR>

<TR valign="bottom">
  <TD>&nbsp;</TD>
  <TD align="left">John W. Huey<BR><I>Vice President, General Counsel
and<BR>Corporate Secretary</I></TD>
</TR>

</TABLE>

<P style="font-size: 10pt" align="justify">Date: November&nbsp;5, 2008

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">3
</DIV>


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<P style="font-size: 10pt" align="center"><B>EXHIBIT INDEX</B>


<P>
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD width="8%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="87%">&nbsp;</TD>
</TR>

<TR valign="bottom">
  <TD align="left" style="border-bottom: 1px solid #000000"><B>Exhibit<BR>Number</B></TD>
  <TD>&nbsp;</TD>
  <TD align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>


 <TR valign="top">
  <TD align="left">99.1</TD>
  <TD>&nbsp;</TD>
  <TD align="justify">Press Release issued November&nbsp;4, 2008,
announcing the election by the Board of Directors of Terra Industries Inc. of
Edward J. Dillon to the position of Vice President and Controller.</TD>
 </TR>

</TABLE>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">4
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{"company-data": {"conformed-name": "TERRA INDUSTRIES INC", "cik": "0000722079", "assigned-sic": "2870", "irs-number": "521145429", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-08520", "film-number": "081163491"}, "business-address": {"street1": "600 FOURTH ST", "street2": "PO BOX 6000", "city": "SIOUX CITY", "state": "IA", "zip": "51102-6000", "phone": "7122771340"}, "mail-address": {"street1": "600 FOURTH STREET", "street2": "PO BOX 6000", "city": "SIOUX CITY", "state": "IA", "zip": "51102-6000"}, "former-company": {"former-conformed-name": "INSPIRATION RESOURCES CORP", "date-changed": "19920517"}}
Filed by Bowne Pure Compliance
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): November 3, 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 5.02
DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS
(c) Effective
November 3, 2008, the Board of Directors of Terra Industries Inc. elected
Edward J. Dillon to the position of Vice President and Controller. In this
capacity, Mr. Dillon is responsible for all internal and external
financial reporting, budgeting, analysis and internal accounting controls.
Mr. Dillon, a Certified Public Accountant, earned a B.A. degree in
Accounting from Boston College, Chestnut Hill, Massachusetts in 1990 and joined
Arthur Andersen LLP in New York City. In 1998, he joined the General Electric
Company and served in numerous roles including Finance Manager for the National
Broadcasting Company in New York City, progressing to Global Controller for the
Consumer & Industrial segment in Louisville, Kentucky. He joined INVISTA, a
subsidiary of Koch Industries, Inc. (KII) in 2005 in Wichita, Kansas as
Director of Corporate Finance and in 2007, moved to KII Corporate as Finance
Director.
Mr. Dillon
will be offered an Employment Severance Agreement substantially identical to
those provided other senior officers, except that the term will be for two
(2) years so as to be coterminous with other senior officer agreements.
For a description of the Employment Severance Agreement, see Exhibit 10.2
to the Company's Current Report on Form 8-K dated October 5, 2006.
ITEM 9.01 FINANCIAL STATEMENTS
AND EXHIBITS.
(c)
Exhibit
99.1
Press Release issued November 4, 2008,
announcing the election by the Board of Directors of Terra Industries Inc. of
Edward J. Dillon to the position of Vice President and Controller.
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: November 5, 2008
EXHIBIT INDEX
Exhibit
Number
Description
99.1
Press Release issued November 4, 2008,
announcing the election by the Board of Directors of Terra Industries Inc. of
Edward J. Dillon to the position of Vice President and Controller.