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                                                                   Exhibit 10(q)

                     POTASH CORPORATION OF SASKATCHEWAN INC.

                            SHORT TERM INCENTIVE PLAN

     This Short-Term Incentive Plan (the "Plan") is intended to aid in
maintaining and developing strong management in the Potash Corporation of
Saskatchewan Inc. and its direct and indirect subsidiaries (the "Corporation")
by providing financial incentives to key employees, in addition to their basic
salaries, in recognition of their achievement of objectives which contribute
materially to the success of the Corporation's business interests.

1. DEFINITIONS

     In this Plan, except where the context otherwise indicates, the following
     definitions apply:

     (a)  "Award Percentage" means a percentage based on the table
          contained in Schedule I and calculated in accordance with the
          formulae contained in Schedule I;

     (b)  "Board" means Board of Directors of Potash Corporation of
          Saskatchewan Inc.;

     (c)  "CEO" means the Chief Executive Officer, from time to time, of
          Potash Corporation of Saskatchewan Inc.;

     (d)  "Committee" means the Compensation Committee of the Board;

     (e)  "Entitled Employee" means a key employee of the Corporation who
          is among the managerial, professional, technical or administrative
          employees of the Corporation and is designated by the Committee as
          eligible to receive an Incentive Award under this Plan and which
          employee is in the employ of the Corporation as of the end of the
          year for which awards are to be granted;

     (f)  "Entitled Mine Employee" means an Entitled Employee who is
          attached to one of the potash or phosphate mining divisions of the
          Corporation;

     (g)  "Equity" for any year means the average of the opening and
          closing balances (after adding to the closing balance any amount
          accrued in such year in respect of Incentive Awards) for the fiscal
          year as reported in the audited financial statements of the
          Corporation for such year;

     (h)  "Incentive Awards" means financial incentives awarded to
          Entitled Employees pursuant to the Plan;

     (i)  "Net Income" for any year means the amount reported as net
          income in the audited financial statement of the Corporation plus
          research and development expenditures, tax expenditures, plus any
          amount accrued in such year in respect of Incentive Awards, as
          adjusted by the Committee at its discretion to account for the effect
          of any

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          extraordinary nonrecurring charges or credits;

     (j)  "Return on Equity" or "ROE" means the product obtained by first
          dividing Net Income in any year by Equity and multiplying the
          resulting quotient by 100;

     (k)  "Target ROE" means the Return on Equity projected in the
          approved budget;

     (l)  "Target Percentage" means the Award Percentage at Target ROE as
          shown in the table contained in Schedule I.

     (m)  "Termination of Employment" means the cessation of employment
          with the Corporation;

     (n)  "Year" means any given fiscal year of the Corporation;

2.   LIMITATION OF AWARD OF INCENTIVES

     Generally, no Incentive Award shall be granted under this Plan with
     respect to any year in which the Return on Equity is less than 50% of the
     Target ROE; provided, however, that the Committee may elect, in its
     discretion, to make Incentive Awards in any year in which circumstances
     have prevented the Corporation from achieving 50% of the Target ROE.

3.   AWARDS GRANTABLE

     An Incentive Award is grantable with respect to any Year to any Entitled
     Employee who has not less than three months' employment with the
     Corporation during such Year. Entitled Employees who have been employed by
     the Corporation for less than one year shall have their Incentive Awards
     prorated in accordance with their period of employment.

4.   METHOD OF DETERMINING INCENTIVE AWARDS

     (a)  Entitled Employees shall be divided into five groups as
          follows:

          Senior Executive Group - Senior Vice Presidents and above
          Executive Group - Vice Presidents
          Senior Management Group - Salary grade 1,200 to 1,499 (Hay Points)
          Middle Management Group - Salary grade 900 to 1,199 (Hay Points)
          Management Group - Salary grade 775 to 899 (Hay Points)

          Provided that the CEO may, from time to time, designate an employee
          for inclusion in one of the above-mentioned groups when, but for such
          designation, the employee would otherwise not be included in such
          group.

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     (b)  Entitled Employees (except Entitled Mine Employees)

          The Incentive Award for each Entitled Employee who is not an Entitled
          Mine Employee will be the Award Percentage of the annual salary of
          such employee, with a deviation of plus or minus 10% of the award so
          determined, which deviation will be dependent upon the Entitled
          Employee's performance as determined by his or her supervisor and
          approved in accordance with the provisions of this Plan.

     (c)  Entitled Mine Employees

          Incentive Awards for each Entitled Mine Employee shall be the sum of
          (i) and (ii) below which amounts shall be arrived at by calculating:

          (i)  The award payable if calculated in accordance with
               the provisions of paragraph 4 (b), and thereafter dividing the
               award so calculated by 2.

          (ii) An award arrived at by calculating the Target
               Percentage of the annual salary of such employee and adjusting
               that award by applying a formula to be developed from time to
               time by the CEO in consultation with the Senior Vice President,
               Administration and the appropriate senior group executive, which
               formula shall reasonably reflect the actual results of the
               mining division to which the employee is attached as compared to
               the approved budget for that division, and thereafter dividing
               the adjusted award by 2.

     (d)  General

          The Incentive Award for any Entitled Employee may exceed or be below
          the amount calculated in accordance with the foregoing formulae at
          the discretion of the CEO.  Incentive Awards falling outside the
          established range shall be recommended by the CEO and shall be
          approved by the Committee in the normal course of administering the
          Incentive Compensation Plan

5.   GRANTING AUTHORITY AND ADMINISTRATION

     The Committee shall, on the recommendation of the CEO, approve the number
     and amount of Incentive Awards for any given year within three months
     after the end of such year.  The Committee shall conclusively interpret
     the provisions of this Plan and decide all questions of fact arising in
     the application.  Determinations and interpretations in individual cases
     may be made by the CEO with due regard to consistency with any prior
     action by the Committee and such determination shall be binding and
     conclusive upon the individual employees concerned and persons claiming
     under them.

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6.   NON-ASSIGNMENT

     Rights and Incentive Awards granted under this Plan are not assignable,
     except that in the case of the death of an Entitled Employee any Incentive
     Award which would otherwise be paid to such employee shall be paid to his
     or her estate.  Incentive Awards are not subject, in whole or in part, to
     attachment, execution or levy of any kind.

7.   AMENDMENTS

     The Board may from time to time amend this Plan, or any provision thereof,
     except that the terms and conditions of Incentive Awards which have been
     granted cannot be amended so as to adversely affect the rights of the
     grantee without his or her consent.

8.   TERM

     This Plan shall be effective on and from January 1, 1995, shall apply to
     Incentive Awards for fiscal year 1995 and thereafter, and shall terminate
     only by appropriate action of the Board.



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                                 SCHEDULE I



TABLE


<TABLE>
<S>                   <C>                     <C>                <C>
                       AWARD PERCENTAGE AT        AWARD           AWARD PERCENTAGE AT
                         THRESHOLD ROE         PERCENTAGE AT            MAXIMUM
GROUP                  (50% OF TARGET ROE)       TARGET ROE       (150% OF TARGET ROE)

Senior Executive          20%                      40%                      80%
Executive                 15%                      30%                      60%
Senior Management         15%                      20%                      40%
Middle Management         10%                      15%                      30%
Management                 5%                      10%                      20%
----------               -----                    -----                    -----
</TABLE>


FORMULA

     The Award Percentage shall be calculated in accordance with the following
     formulae:

     (i)  Where the ROE is less than the Target ROE:


<TABLE>
<S>                            <C>                                
Senior Executive                (40%)(AROE)
Executive                       (30%)(AROE)
Senior Management               (10%)(AROE)  +10%
Middle Management               (10%)(AROE)   +5%
Management                      (10%)(AROE)
----------                      -----------------
</TABLE>

     (ii) Where the ROE is equal to or greater than the Target ROE:

<TABLE>
<S>                            <C>                                
Senior Executive                (80%)(AROE)  -40%
Executive                       (60%)(AROE)  -30%
Senior Management               (40%)(AROE)  -20%
Middle Management               (30%)(AROE)  -15%
Management                      (20%)(AROE)  -10%
----------                      -----------------
</TABLE>



NOTES

     (i)  Adjusted ROE (AROE) =        ROE      x 100
                                    ---------
                                    Target ROE


     (ii) Where AROE is greater than 150 (i.e. the maximum return on
          equity) the AROE is deemed to be 150.