Terra Nitrogen (TNH) is a $2.6 billion market capitalization Master Limited Partnership (MLP) that yields 10.79% based on its last quarterly distribution of $3.75/unit and a closing price of $139/share. TNH is benefitting from strong agricultural commodity price inflation, rising corn prices, and growing emerging market demand for corn, beef and pork. Rising prices are driving farmers to increase corn and other agricultural plantings, which drive demand for fertilizer. Additionally, the macro-demographic effect of 1.4 billion Chinese and Indians moving from subsistence lifestyles to those of the middle class in newly industrializing economies, will lead to improved diets, higher meat consumption, and rising demand for feedstock to feed pork and cattle in the future.
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