TERRA INDUSTRIES INC.

MAJORITY AND PARTIALLY OWNED SUBSIDIARIES

December 31, 2002



Exhibit 21



|Name of Company |  | Percentage Held by TRA                             |  | Percentage Held by Sub          |  | Jurisdiction                        
|--------------- |  | -------------------------------------------------- |  | ------------------------------- |  | ------------------------------------
|I.              |  | Inspiration Coal Inc.                              |  | 100                             |  |                                     
|II.             |  | Inspiration Consolidated Copper Company which
owns |  | 100                             |  |                                     
|                |  | A.                                                 |  | Inspiration Development Company |  |                                     
|III.            |  | Inspiration Gold Incorporated                      |  | 100                             |  |                                     
|IV.             |  | Terra Capital Holdings, Inc. which owns            |  | 100                             |  |                                     
|                |  | A.                                                 |  | Terra Capital, Inc. which owns  |  |                                     
|                |  |                                                    |  | 1.                              |  | Terra Methanol Corporation          
|                |  |                                                    |  | 2.                              |  | Terra International, Inc. which owns
|                |  |                                                    |  |                                 |  | a.                                  
|                |  |                                                    |  |                                 |  | b.                                  
|                |  |                                                    |  |                                 |  | c.                                  
|                |  |                                                    |  |                                 |  | d.                                  
|                |  |                                                    |  |                                 |  | e.                                  
|                |  |                                                    |  |                                 |  |                                     
|                |  |                                                    |  |                                 |  | f.                                  
|                |  |                                                    |  | 3.                              |  | BMC Holdings, Inc. which owns       
|                |  |                                                    |  |                                 |  | a.                                  
|                |  |                                                    |  |                                 |  |                                     
|                |  |                                                    |  |                                 |  |                                     

---

|1 |  | Terra Methanol Corporation owns 27% of Terra (U.K.) Holdings, Inc.
|- |  | ------------------------------------------------------------------



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TERRA INDUSTRIES INC.

MAJORITY AND PARTIALLY OWNED SUBSIDIARIES

December 31, 2002



Exhibit 21



|Name of Company |  | Percentage Held by TRA |  | Percentage Held by Sub |  | Jurisdiction                         
|--------------- |  | ---------------------- |  | ---------------------- |  | -------------------------------------
|                |  |                        |  | 4.                     |  | Terra Nitrogen Corporation which owns
|                |  |                        |  |                        |  | a.                                   
|                |  |                        |  |                        |  |                                      
|                |  |                        |  |                        |  |                                      

---

|2 |  | Terra Nitrogen Corporation's interest includes 1.0101% as General Partner and some of TNCLP is owned directly by Terra Capital, Inc.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------

|3 |  | Terra Nitrogen Corporation is 1% General Partner.
|- |  | -------------------------------------------------