Marketplace Morning Report

Episode: Should we expect USPS to make money?

Date: March 20, 2026
Host: Nancy Marshall Genser (in for David Brancaccio)

Episode Overview

This episode tackles the ongoing financial crisis at the U.S. Postal Service (USPS), questioning whether the USPS should be expected to operate as a profitable business or be viewed as an essential public service. Expert guests discuss the growing financial shortfall, the challenges behind balancing costs and revenues, and the historic tension between service obligations and fiscal reality. The second half of the episode highlights how the ongoing war in the Middle East is driving up costs for American farmers, particularly for fertilizer and diesel, threatening their outlooks and profitability.

Main Segment: USPS Financial Crisis

[01:02–03:01]

Key Discussion Points

• Severity of the Crisis

  • USPS faces a “severe financial crisis” and could run out of cash within a year without major interventions ([01:02]).

  • USPS reported a $9 billion loss in the last fiscal year; historically, annual losses averaged $4.5–5 billion ([01:27]).

    “I remember when the average losses were 4.5 or 5 billion, but now the losses are increasing over time.”
    — Rick Geddes (Cornell), [01:31]

• Universal Service Obligation

  • USPS is legally required to deliver mail to every address six days a week, which creates high and inflexible baseline costs ([01:45]).

    “It's basically to deliver the mail to every address it can six days a week… all the trucks run six days a week, the carriers walk their routes.”
    — Rick Geddes, [01:45–01:55]

• Revenue Challenges

  • Mail volume is declining rapidly, and regulatory price caps limit how much USPS can adjust stamp prices ([02:00]).

    • Legislation restricts their ability to raise significant new revenue.

    “A combination of the price cap and the declining volumes hit the Post Office quite hard.”
    — Jim Campbell (lawyer, consultant), [02:11]

• Potential Solutions Considered

  • Reduce delivery days, close rural/remote post offices, raise stamp prices (to $1 or more), or implement major financial reforms ([02:15]).
  • Realistically, revenues are unlikely to ever exceed costs under the current framework.

• Should USPS Be Profitable?

  • Broader philosophical question: Is USPS a business, or a public service like the Forest Service or Weather Service?

  • James O’Rourke of Notre Dame emphasizes public value over profitability:

    “We don’t ask the Forest Service or the Weather Service to make money. They are a service to the people of the United States. It would be nice if the Postal Service could break even or at least come close.”
    — James O’Rourke, [02:37]

  • Any meaningful solution requires substantial political action and decisions from Congress.

    “That … would take some heavy lifting on Congress’s part.”
    — James O’Rourke, [02:53]

Brief Update: Student Loan Portfolio Changes

[03:01–03:38]

• The U.S. Education Department is transferring management of defaulted student loans to the Treasury Department.
• This is seen as the first step toward the Education Department exiting all federal student loan management, in line with current administration plans ([03:01]).

Second Segment: War in the Middle East and U.S. Agriculture

[04:38–07:50]

Key Discussion Points

• Economic Ripple Effects

  • War has driven up fertilizer (by 25%) and diesel (over $5/gallon) prices for American farmers ([05:30]).

  • Farmers are facing “tens of thousands” in additional costs, with low optimism for recovering these expenses through yield ([05:20],[05:47]).

    “We put a very large sum of our own money into the crop last year and we didn’t get any nickel of it back, so it’s very concerning.”
    — Casey Smith (rice farmer, Texas), [05:20]

    "There's zero chance that our yield will make up that extra expense. There's zero chance.”
    — Casey Smith, [05:47]

• Limited Options for Farmers

  • Many farmers cannot pass these added costs to the market, as prices are set globally ([06:23]).

  • Resulting in choices to reduce fertilizer use or postpone equipment repairs, which may impact future yields ([06:31]).

    “I have no way of passing the cost off. Our corn is priced in a global marketplace. I just have to take it on the chin that way.”
    — D. Vaughn (farmer, Texas Panhandle), [06:23]

• Concern for Farming's Future

  • Older farmers worry about younger farmers' ability to withstand these shocks ([06:47]).

    “Some of them may not make it. And those of us that are, you know, 60 plus that are looking at, you know, well, who's going to farm this ground when we're gone? That's, that's what we have to be concerned about.”
    — D. Vaughn, [06:47]

• Global Fertilizer Shortage

  • Middle East is a crucial fertilizer producer; disruptions are affecting global supply right at peak usage season ([07:09]).

    “There is a huge volume that’s not making it through to the customer. And this is all at a time when we are in peak season for application for the US, for Europe, India.”
    — Julia Meehan (ICIS), [07:09]

  • Ongoing supply issues could escalate prices further and force farmers to cut back, which may lower crop yields and boost consumer food prices ([07:27]).

Memorable Quotes & Moments

• On USPS as a Service vs. Business:

  “We don’t ask the Forest Service or the Weather Service to make money. They are a service…”
  — James O’Rourke, [02:37]

• On Farmer Anxiety:

  “Honestly, I don’t feel very positive about it.”
  — Casey Smith, [05:05]

• On Inevitable Losses:

  “There’s zero chance that our yield will make up that extra expense. There’s zero chance.”
  — Casey Smith, [05:47]

Timestamps for Key Segments

• [01:02] – Main segment opens: Should USPS be expected to make money?
• [01:27–02:53] – USPS financial analysis and expert insights.
• [03:01] – Brief: Student loan portfolio moves.
• [04:38–07:50] – War in the Middle East and impact on American agriculture.
• [07:09] – Fertilizer shortage explained.
• [07:37] – Impact of inflated costs on food prices discussed.

Tone and Style

The episode is factual yet urgent, with a focus on complex economic tradeoffs and personal impacts. The expert voices provide practical, sometimes sobering insights about longstanding government services and the downstream effects of global conflict. The hosts and reporters maintain a clear, accessible tone throughout.