Your steer has a rectal prolapse. It's basically his inards trying to come out. Need to call your vet and get him to fix it soon before he gets infected. He might even have problems shedding his feces, so sense the urgency.
I've seen one rectal prolapse on a calf and he could not have bowel movements... was taken to the meat locker plant and made into beef sticks pronto (kind of like beef jerky)... wish you luck with yours.