Morningstar Rating

Stock Research and Analysis

by Ben Johnson
Terra Industries is riding a rising tide in the North American agricultural market. In the wake of a decade's worth of domestic capacity rationalization and facing a surge in demand for its products, the company is well situated to generate hefty profits   Read more 

Bulls Say

The diesel exhaust fluid market could be a sizeable source of new demand for urea within North America.
Terra's Trinidad-based joint venture enjoys access to dirt-cheap natural gas feedstock. Read more 

Bears Say

Koch Industries recently announced expansion plans for one of its U.S.-based nitrogen plants. New capacity could quickly ease tight markets and bring an abrupt end to the upward march of nitrogen prices.
More nitrogen-efficient crops--currently in the research pipelines of Monsanto MON and DuPont DD--could pose a long-term threat to nitrogen demand. Read more 

Strategy

Terra continues to seek new ways to diversify its natural gas base by pursuing lower-cost feedstock options and new joint ventures.  Read more 

Management

Michael Bennett has served as Terra's CEO since 2001. Before that, he had been COO since 1997. The firm's compensation policies are reasonable, and we give the company kudos for tying long-term incentive awards to its return on capital. We are pleased   Read more 

Profile

Terra manufactures nitrogen fertilizers for use in agriculture. The company's manufacturing sites are primarily located in the U.S. Gulf Coast and the Grain Belt. The firm   Read more 

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