COLUMBUS, Ohio — It’s a great time to be a beef farmer; producers are earning decent income and the consumer seems to have no qualms with today’s prices. But some producers have concerns about rising feed and fuel costs, which could hit consumers’ pocketbooks and make them less likely to purchase pricey cuts of beef.

“Prices for cattle recently reached record highs,” said John Grimes, beef coordinator for The Ohio State University extension. “So there’s a lot of enthusiasm among beef producers right now because of what animals are worth at the market, but input prices such as fuel, feed and fertilizer are still an issue.”

Grimes spoke recently at the Ohio Beef Expo, which was sponsored by the Ohio Cattlemen’s Assoc. The event, which is in its 25th year and included a trade show and steer and heifer show, is the single largest event in the state devoted to cattle producers.

According to Grimes, a key issue to this is the country’s beef supply is tight at present, with U.S. producers having the smallest cow herds nationwide since the 1950s. This is attributed, he said, to the drought in the Southwest and higher-than-average exports.

According to the Ohio Beef Council, the state’s beef industry is valued at approximately $1.3 billion, producing nearly 500 million pounds of beef each year. Ohio ranks 16th nationally in beef operations.

“Looking from the outside in, sale prices are very good, which is very much a function of supply and demand,” Grimes said. “We have fewer cows, export sales have been record high and domestic demand has been solid.”

As a result, producers are trying to get as many live calves out of cows now as they can, he said. This has led producers to place more emphasis on fertility, calving ease and watching feed costs.

Grimes works on beef cattle research, including production, new synchronization systems, artificial insemination, alternative forages and ways to supplement production shortcomings for the year.

“One way producers are trimming feed costs is by trying to do as much with grazing as we can, to minimize the use of harvested forages,” he said. “Anytime you let the cow do the harvesting, it’s more economical. The equipment costs associated with hay production can result in higher-priced forages for a small producer.”

According to Grimes, demand for corn has also increased significantly, as 2011 was the first year the amount of corn used for ethanol production basically equaled the amount used for feed production. “This is an interesting dynamic, which helped to drive up prices for feedstuffs,” he said.

An issue that has recently impacted beef prices negatively is publicity surrounding lean finely textured beef, also called “pink slime” by some. According to Grimes, adverse publicity has resulted in prices for 50 percent lean trimmings to plummet to nearly half the value seen in early March. The issue also contributed to a recent decline in feed cattle prices.

But overall, Grimes says the outlook for U.S. beef is good for the next few years, noting that trade with Canada, Mexico, Japan and South Korea remains strong. In addition, the rise in the growth of upscale hamburger chains has led to an increasing demand for higher-qualify beef.

He cautioned that rising consumer costs, including gas prices, could have an impact on consumer spending.

“We have a home for our product, but challenges are there,” Grimes said. “The biggest concern is pricing ourselves out of the market. Could the prices get so high that the consumer is going to push back? Who knows? If gas prices go over $4 a gallon, that’s going to have a big effect on consumer spending because of concerns about disposable income.”