Background The district of La Serena, in the Badajoz province, contains some of the most outstanding and best conserved dry Mediterranean grassland (pseudo-steppes) area of the Iberian Peninsula and the Western part of Europe It has been proposed to include the area in the Natura 2000 network due to the fact that it harbours both priority habitats (i.e. sub-steppe pastures of grasses and annuals) and substantial populations of priority steppe bird species, such as the great bustard, little bustard and lesser kestrel. However, these habitats are being continually destroyed due to a lack of planning and changing land-use. In some cases, natural resources are being over exploited by over grazing and hunting or damaged by heavy construction work. In other cases, however, the land is being abandoned and thereby the very mechanism that has maintained the old system of non-irrigated farming is being destroyed, which has a negative impact on the conservation of the dry grassland areas. These traditional methods are being replaced by more modern irrigation and intensive agricultural practices, which are destroying the natural ecological assets of the area. Objectives The project aimed to conserve the habitats and species of the special protection area (SPA) of La Serena through the development of an innovative SPA management model. To achieve this, two pilot projects were to test different methods of environmentally friendly farming. The results would be evaluated in terms of their impact on biodiversity and would be used to develop management models for the long-term conservation of these dry grasslands ecosystems. The project foresaw a close co-ordinated with a similar LIFE project (LIFE00 NAT/E/7348 Management of the PSA-SCI 'La Serena y Sierras periféricas') run by the regional government, Junta de Extremadura. This second project was to be implemented over a wider area. In this way, the two projects were to exchange experience and pool their efforts to launch a large-scale awareness-raising campaign on the conservation value and importance of these steppe areas. Results In general, the expected results have been successfully achieved, despite unusual weather conditions with very high rainfall over the four-year duration of the project. SEO/Birdlife has implemented an innovative management model in two pilot estates demonstrating that an alternative sustainable agricultural model is economically feasible and can improve the conservation status of the dry pseudo-steppe grasslands habitats and species in La Serena. The LIFE-funded project has been decisive in establishing agreements with landowners and tenants and has directly involved the local population with nature conservation. Moreover, it has helped to promote sustainable practices in the area in direct and indirect ways. The model implemented has motivated other land tenants not involved in the project to continue some of the actions carried out within the project (e.g. sowing of leguminous). The project has demonstrated that with suitable support schemes, farmers can be encouraged to practice sustainable farming. This change of mentality is a direct outcome of the implementation of the two LIFE projects in la Serena. Data from the two pilot estates were compared with two other estates that are managed in a conventional way. The final results were not as conclusive as expected due to the uncommon weather conditions (high rainfall) which meant that more pasture than usual was available for the high number of livestock and therefore the impact on the land was not as negative as it would have been in dryer years. Though this situation partially limited the validation of the applied methodology, the results were nevertheless very positive in the estates managed by the project and prove that the management model is well-designed for the long-term conservation of these steppe ecosystems. It provides an interesting analysis of economic and biological considerations that can be useful for the establishment of appropriate supports through the Common Agricultural Policy (CAP), agri-environmental measures, rural development funds, etc. An analysis of possible funding mechanisms was also produced. An in-depth botanical and entomological study of the whole SPA was carried out. Bird census information from biological studies carried out jointly by both projects was used to define a comprehensive zoning of the area. These results have been sent to the Regional Government of Extremadura, which is responsible for the implementation of agri-environmental schemes. In parallel, an educational campaign in schools and exhibitions have been carried out, helping to increase awareness of the area’s natural assets. Brochures explaining the results obtained and leaflets targeted at children have also had a positive effect. The project has demonstrated that with a slight change in compensatory schemes, the conservation of threatened species is possible and compatible with agriculture in the region. The management model proposed can also be transferred to other steppe areas, not only in Extremadura, but also in similar areas of Spain.