Species conservation and forage production are both important, yet conflicting components of sustainable grassland management. We modeled forage production and conservation value as dependents in a chain of responses and effects, starting with abiotic environmental conditions that affect the spatial distribution of land uses and biotic ecosystem properties. We asked which relationships in this causal chain determine trade-offs between forage production and conservation value. Abiotic and biotic ecosystem properties were recorded on 46 plots in the coastal marshes of Northwest Germany. Plant and bird conservation values were calculated using Red Lists, and sales of forage-based agricultural products were assessed by interviewing farmers. We used a structural equation model to determine responses and effects. Groundwater depth and salinity represent the ultimate causes for the spatial variation in sales and conservation value. The water gradient translated into more proximate causes, such as land-use intensity affecting aboveground net primary productivity, forage quality, and species richness. Plant species conservation and forage production were segregated along the water gradient, and both bird conservation and forage production depended on grassland management, albeit at different fertilization levels. Our study points to segregation and integration as two spatial strategies to react to trade-offs between services.