<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS OF BADGER PAPER MILLS, INC. AS OF AND FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               SEP-30-1997
<CASH>                                           2,914
<SECURITIES>                                     1,298
<RECEIVABLES>                                    5,834
<ALLOWANCES>                                         0
<INVENTORY>                                      5,839
<CURRENT-ASSETS>                                18,707
<PP&E>                                          65,522
<DEPRECIATION>                                  36,581
<TOTAL-ASSETS>                                  50,702
<CURRENT-LIABILITIES>                            7,165
<BONDS>                                         21,911
<PREFERRED-MANDATORY>                            2,700
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                         187
<TOTAL-LIABILITY-AND-EQUITY>                    50,702
<SALES>                                         53,034
<TOTAL-REVENUES>                                53,034
<CGS>                                           50,321
<TOTAL-COSTS>                                   53,396
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               1,000
<INCOME-PRETAX>                                  (922)
<INCOME-TAX>                                     (314)
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     (608)
<EPS-PRIMARY>                                    (.31)
<EPS-DILUTED>                                        0