<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF BADGER PAPER MILLS, INC. AS OF AND FOR THE
SIX MONTHS ENDED JUNE 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               JUN-30-1997
<CASH>                                           3,126
<SECURITIES>                                     1,305
<RECEIVABLES>                                    6,281
<ALLOWANCES>                                         0
<INVENTORY>                                      6,887
<CURRENT-ASSETS>                                19,814
<PP&E>                                          65,921
<DEPRECIATION>                                  36,570
<TOTAL-ASSETS>                                  52,176
<CURRENT-LIABILITIES>                            8,758
<BONDS>                                         21,991
<PREFERRED-MANDATORY>                            2,700
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                         178
<TOTAL-LIABILITY-AND-EQUITY>                    52,176
<SALES>                                         34,033
<TOTAL-REVENUES>                                34,033
<CGS>                                           32,733
<TOTAL-COSTS>                                   34,801
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 642
<INCOME-PRETAX>                                (1,184)
<INCOME-TAX>                                     (403)
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     (781)
<EPS-PRIMARY>                                    (.40)
<EPS-DILUTED>                                        0