<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF BADGER PAPER MILLS, INC. AS OF AND FOR THE THREE
MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<CASH>                                           2,802
<SECURITIES>                                     1,296
<RECEIVABLES>                                    5,189
<ALLOWANCES>                                         0
<INVENTORY>                                      7,688
<CURRENT-ASSETS>                                19,392
<PP&E>                                          64,342
<DEPRECIATION>                                  35,564
<TOTAL-ASSETS>                                  51,532
<CURRENT-LIABILITIES>                            9,106
<BONDS>                                         21,004
<PREFERRED-MANDATORY>                            2,700
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                         178
<TOTAL-LIABILITY-AND-EQUITY>                    51,532
<SALES>                                         16,213
<TOTAL-REVENUES>                                16,213
<CGS>                                           16,275
<TOTAL-COSTS>                                   17,327
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 293
<INCOME-PRETAX>                                (1,305)
<INCOME-TAX>                                     (444)
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     (861)
<EPS-PRIMARY>                                    (.44)
<EPS-DILUTED>                                        0