<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF BADGER PAPER MILLS, INC. AS OF AND 
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                         469,109
<SECURITIES>                                 3,323,135
<RECEIVABLES>                                7,361,391
<ALLOWANCES>                                         0
<INVENTORY>                                  8,194,338
<CURRENT-ASSETS>                            21,272,286
<PP&E>                                      76,921,043
<DEPRECIATION>                              47,022,236
<TOTAL-ASSETS>                              53,541,324
<CURRENT-LIABILITIES>                        9,276,311
<BONDS>                                     19,224,076
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     2,700,000
<OTHER-SE>                                     177,834
<TOTAL-LIABILITY-AND-EQUITY>                53,541,324
<SALES>                                     18,453,611
<TOTAL-REVENUES>                            18,453,611
<CGS>                                       18,298,693
<TOTAL-COSTS>                               19,227,934
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             258,834
<INCOME-PRETAX>                            (1,003,326)
<INCOME-TAX>                                 (341,179)
<INCOME-CONTINUING>                          (662,147)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 (662,147)
<EPS-PRIMARY>                                    (.34)
<EPS-DILUTED>                                        0