##### 



Terra Industries Inc.
 Ratio of earnings to fixed charges
 2003
    
    
    2004
    
    
    2005
    
    
    2006
    
    
    2007EarningsIncome (loss) from continuing
operations
    
    
    (12,481
    )
    
    
    67,596
    
    
    
    22,087
    
    
    
    4,213
    
    
    
    201,896Income tax expense (benefit)
    
    
    (57,000
    )
    
    
    (5,000
    )
    
    
    14,217
    
    
    
    9,247
    
    
    
    114,795Earnings before income tax
    
    
    (69,481
    )
    
    
    62,596
    
    
    
    36,304
    
    
    
    13,460
    
    
    
    316,691Add:Minority Interest Expense (Income)
    
    
    (8,617
    )
    
    
    11,207
    
    
    
    13,667
    
    
    
    11,286
    
    
    
    50,281Equity Investee (Income) Loss
    
    
    
    
    
    
    
    
    
    
    (21,415
    )
    
    
    (17,013
    )
    
    
    (16,209
    )Fixed Charges
    
    
    61,637
    
    
    
    67,068
    
    
    
    78,052
    
    
    
    69,137
    
    
    
    77,147Distributed income of equity investees
    
    
    
    
    
    
    
    
    
    
    46,375
    
    
    
    35,875
    
    
    
    29,45053,020
    
    
    
    78,275
    
    
    
    116,679
    
    
    
    99,285
    
    
    
    140,669Subtract:Preference Security and Preferred
Dividends
    
    
    1,153
    
    
    
    9,101
    
    
    
    18,741
    
    
    
    13,961
    
    
    
    40,339TOTAL EARNINGS
    
    
    (17,614
    )
    
    
    131,770
    
    
    
    134,242
    
    
    
    98,784
    
    
    
    417,021Fixed chargesInterest expense
    
    
    55,072
    
    
    
    53,134
    
    
    
    53,478
    
    
    
    47,991
    
    
    
    29,100Preference Security Dividend (TNCLP)
    
    
    1,153
    
    
    
    8,072
    
    
    
    13,607
    
    
    
    8,861
    
    
    
    35,239Preferred dividends
    
    
    
    
    
    
    1,029
    
    
    
    5,134
    
    
    
    5,100
    
    
    
    5,1001/3 Rent expense on operating leases
    
    
    5,412
    
    
    
    4,833
    
    
    
    5,833
    
    
    
    7,185
    
    
    
    7,70861,637
    
    
    
    67,068
    
    
    
    78,052
    
    
    
    69,137
    
    
    
    77,147Ratio of earnings to fixed charges
    
    
    (0.3
    )
    
    
    2.0
    
    
    
    1.7
    
    
    
    1.4
    
    
    
    5.4Dollar amount of excess (deficiency)
    
    
    (79,251
    )
    
    
    64,702
    
    
    
    56,190
    
    
    
    29,647
    
    
    
    339,874




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##### 



RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED SHARE DIVIDEND REQUIREMENTS
 2003
    
    2004
    
    2005
    
    2006
    
    2007EARNINGSNet income (loss) from continuing operations
    
    $
    (12,481
    )
    
    $
    67,596
    
    
    $
    22,087
    
    
    $
    4,213
    
    
    $
    201,896Income tax expense (benefit)
    
    
    (57,000
    )
    
    
    (5,000
    )
    
    
    14,217
    
    
    
    9,247
    
    
    
    114,795Earnings (loss) before income taxes
    
    
    (69,481
    )
    
    
    62,596
    
    
    
    36,304
    
    
    
    13,460
    
    
    
    316,691Minority
interest expense (income) in consolidated subsidiaries
    
    
    (8,617
    )
    
    
    11,207
    
    
    
    13,667
    
    
    
    11,286
    
    
    
    50,281Income (loss) of equity investments
    
    
    
    
    
    
    
    
    
    
    (21,415
    )
    
    
    (17,013
    )
    
    
    (16,209
    )Fixed charges
    
    
    61,637
    
    
    
    67,068
    
    
    
    78,052
    
    
    
    69,137
    
    
    
    77,147Distributed income of equity investees
    
    
    
    
    
    
    
    
    
    
    46,375
    
    
    
    35,875
    
    
    
    29,450Less: preferred dividends
    
    
    
    
    
    
    (1,029
    )
    
    
    (5,134
    )
    
    
    (5,100
    )
    
    
    (5,100
    )Less: preference security dividends of
Terra Nitrogen Company, L.P.
    
    
    (1,153
    )
    
    
    (8,072
    )
    
    
    (13,607
    )
    
    
    (8,861
    )
    
    
    (35,239
    )TOTAL EARNINGS (LOSS)
    
    $
    (17,614
    )
    
    $
    131,770
    
    
    $
    134,242
    
    
    $
    98,784
    
    
    $
    417,021FIXED CHARGESInterest expense
    
    $
    55,072
    
    
    $
    53,134
    
    
    $
    53,478
    
    
    $
    47,991
    
    
    $
    29,100One-third of rentals on operating leases
    
    
    5,412
    
    
    
    4,833
    
    
    
    5,833
    
    
    
    7,185
    
    
    
    7,708Preferred dividends
    
    
    
    
    
    
    1,029
    
    
    
    5,134
    
    
    
    5,100
    
    
    
    5,100Preference security dividends of Terra
Nitrogen Company, L.P.
    
    
    1,153
    
    
    
    8,072
    
    
    
    13,607
    
    
    
    8,861
    
    
    
    35,239TOTAL FIXED CHARGES
    
    $
    61,637
    
    
    $
    67,068
    
    
    $
    78,052
    
    
    $
    69,137
    
    
    $
    77,147EARNINGS EXCESS (DEFICIENCY) TO COVER FIXED CHARGES
    
    $
    (79,251
    )
    
    $
    64,702
    
    
    $
    56,190
    
    
    $
    29,647
    
    
    $
    339,874RATIO OF EARNINGS TOFIXED CHARGES AND PREFERRED DIVIDENDS
    
    
    (0.3
    )
    
    
    2.0
    
    
    
    1.7
    
    
    
    1.4
    
    
    
    5.4