##### 



Exhibit 12.1
 Terra Industries Inc.  Ratio of earnings to fixed charges
 2001
    
    
    2002
    
    
    2003
    
    
    2004
    
    
    2005EarningsIncome (loss) from continuing operations
    
    
    (79,843
    )
    
    
    (36,174
    )
    
    
    (12,481
    )
    
    
    67,596
    
    
    
    22,087Income tax expense (benefit)
    
    
    (33,000
    )
    
    
    (24,000
    )
    
    
    (57,000
    )
    
    
    (5,000
    )
    
    
    14,217Earnings before income tax
    
    
    (112,843
    )
    
    
    (60,174
    )
    
    
    (69,481
    )
    
    
    62,596
    
    
    
    36,304Add:Minority Interest Expense (Income)
    
    
    (2,247
    )
    
    
    1,510
    
    
    
    (8,617
    )
    
    
    11,207
    
    
    
    13,667Equity Investee (Income) Loss
    
    
    (953
    )
    
    
    (983
    )
    
    
    (803
    )
    
    
    (893
    )
    
    
    21,415Fixed Charges
    
    
    63,949
    
    
    
    63,584
    
    
    
    65,453
    
    
    
    71,154
    
    
    
    80,813Distributed income of equity investees
    
    
    600
    
    
    
    700
    
    
    
    1,050
    
    
    
    500
    
    
    
    46,37561,349
    
    
    
    64,811
    
    
    
    57,083
    
    
    
    81,968
    
    
    
    162,270Subtract:Preference Security and Preferred
Dividends
    
    
    2,028
    
    
    
    1,846
    
    
    
    1,153
    
    
    
    9,101
    
    
    
    18,724TOTAL EARNINGS
    
    
    (53,522
    )
    
    
    2,791
    
    
    
    (13,551
    )
    
    
    135,463
    
    
    
    179,850Fixed chargesInterest expense
    
    
    53,594
    
    
    
    53,800
    
    
    
    55,072
    
    
    
    53,134
    
    
    
    53,478Preference Security Dividend (TNCLP)
    
    
    2,028
    
    
    
    1,846
    
    
    
    1,153
    
    
    
    8,072
    
    
    
    13,590Preferred dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,029
    
    
    
    5,134Deferred finance amortization-TCAPI
    
    
    3,271
    
    
    
    2,790
    
    
    
    3,816
    
    
    
    4,086
    
    
    
    2,778Bond Discounts-TREC
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1/3 Rent expense on operating leases
    
    
    5,049
    
    
    
    5,148
    
    
    
    5,412
    
    
    
    4,833
    
    
    
    5,83363,949
    
    
    
    63,584
    
    
    
    65,453
    
    
    
    71,154
    
    
    
    80,813Ratio of earnings to fixed charges
    
    
    (0.8
    )
    
    
    0.0
    
    
    
    (0.2
    )
    
    
    1.9
    
    
    
    2.23Dollar amount of Deficiency
    
    
    (117,471
    )
    
    
    (60,793
    )
    
    
    (79,004
    )
    
    
    
    
    
    
    




---



##### 



RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED SHARE DIVIDEND REQUIREMENTS
 Year ended December 31,2001
    
    2002
    
    2003
    
    2004
    
    2005EARNINGSNet income (loss) from continuing operations
    
    $
    (79,843
    )
    
    $
    (36,174
    )
    
    $
    (12,481
    )
    
    $
    67,596
    
    
    $
    22,087Income tax expense (benefit)
    
    
    (33,000
    )
    
    
    (24,000
    )
    
    
    (57,000
    )
    
    
    (5,000
    )
    
    
    14,217Earnings (loss) before income taxes
    
    
    (112,843
    )
    
    
    (60,174
    )
    
    
    (69,481
    )
    
    
    62,596
    
    
    
    36,304Minority interest expense (income) in consolidated subsidiaries
    
    
    (2,247
    )
    
    
    1,510
    
    
    
    (8,617
    )
    
    
    11,207
    
    
    
    13,667Income (loss) of equity investments
    
    
    (953
    )
    
    
    (983
    )
    
    
    (803
    )
    
    
    (893
    )
    
    
    21,415Fixed charges
    
    
    63,949
    
    
    
    63,584
    
    
    
    65,453
    
    
    
    71,154
    
    
    
    80,813Distributed income of equity investees
    
    
    600
    
    
    
    700
    
    
    
    1,050
    
    
    
    500
    
    
    
    46,375Less: preferred dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,029
    )
    
    
    (5,134
    )Less: preference security dividends of Terra Nitrogen Company, L.P.
    
    
    (2,028
    )
    
    
    (1,846
    )
    
    
    (1,153
    )
    
    
    (8,072
    )
    
    
    (13,590
    )TOTAL EARNINGS (LOSS)
    
    $
    (53,522
    )
    
    $
    2,791
    
    
    $
    (13,551
    )
    
    $
    135,463
    
    
    $
    179,850FIXED CHARGESInterest expense
    
    $
    53,594
    
    
    $
    53,800
    
    
    $
    55,072
    
    
    $
    53,134
    
    
    $
    53,478Amortization of debt expenses
    
    
    3,278
    
    
    
    2,790
    
    
    
    3,816
    
    
    
    4,086
    
    
    
    2,778One-third of rentals on operating leases
    
    
    5,049
    
    
    
    5,148
    
    
    
    5,412
    
    
    
    4,833
    
    
    
    5,833Preferred dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,029
    
    
    
    5,134Preference security dividends of Terra Nitrogen Company, L.P.
    
    
    2,028
    
    
    
    1,846
    
    
    
    1,153
    
    
    
    8,072
    
    
    
    13,590TOTAL FIXED CHARGES
    
    $
    63,949
    
    
    $
    63,584
    
    
    $
    65,453
    
    
    $
    71,154
    
    
    $
    80,813EARNINGS EXCESS (DEFICIENCY) TO COVER FIXED CHARGES
    
    $
    (117,471
    )
    
    $
    (60,793
    )
    
    $
    (79,004
    )
    
    $
    64,309
    
    
    $
    99,037RATIO OF
EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.90
    
    
    
    2.23