Cow manure contains the main nutrients required for healthy plant growth: nitrogen, potassium and phosphorus in addition to numerous micronutrients. The nutrients release slowly as the manure triggers microorganisms in the soil to become active and the compost breaks down. As long as you work manure into the soil after it has "cured" for a while, it is not strong enough to burn plants. Iowa State University Extension recommends topdressing an established lawn with decomposed or "aged" manure in the fall, using 100 lb. per 1,000 square feet. Alternatively, split the application to half in fall and the second half in early spring.
Composted cow manure improves the soil structure. The compost evens out soil by aerating heavier clay soil so roots have room to breathe. But it also binds together looser soil to anchor the sod and trap nutrients where they can be used. Well balanced soil is less threatened by erosion.
Healthier soil that has a balanced texture filters the water that runs through it. Rainfall and watering release more of the nutrients in the compost so it is available to roots. When the soil isn't so dense that water runs off it or so porous and loose that it can't trap water, the lawn absorbs and uses rainwater, reducing the need for extra watering.
A composted lawn is healthy for the long term. The microbial activity in the soil inhibits the spread of pathogens -- lawn-eating pests. Healthier bugs dominate and the lawn stays green and disease-free. When there is reduced need for chemical pest control, the lawn is safer for people, pets and wildlife and there is little or no toxic pesticide run-off to endanger local water tables or nearby streams, lakes and rivers.