Lostwood NWR has been designated a "Globally Important Bird Area" by the American Bird Conservancy. The Refuge provides breeding habitat for the Great Plains population of the threatened piping plover. Also, many declining grassland-associated bird species, such as Baird's sparrow, benefit from the intensive grassland management programs on the Refuge. Using prescribed burning and grazing, Refuge staff reduce encroachment by exotic plants and woody vegetation. The native mixed-grass community is slowly being restored.

Prescribed burning is primarily used to stop the spread of woody vegetation that has increased with years of successful fire suppression. The many clumps of aspen now on the Refuge are a perfect example of this encroachment.

The livestock rotational grazing system replicates the historical effects of bison. This intensive, short duration system is directed primarily at reducing the exotic cool season sod-forming grasses (e.g. smooth bromegrass and Kentucky bluegrass) while increasing the vigor of native grasses.

In combination, burning and grazing stress both the exotic grasses and woody plants. This confers a competitive advantage to native species. Typically, one-third or more of the Refuge is left idle on an annual basis. Employing grazing, burning, and idling over time and space maximizes a mosaic of habitat types and benefits native plant and animal species.

The noxious weed, leafy spurge, is another difficult exotic plant that is a management problem on the Refuge. It requires treatment beyond fire and grazing. Current control techniques include introducing spurge-eating flea beetles, limited herbicide application, and mowing.