<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, 1998, AND IS 
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               MAR-31-1998
<CASH>                                           2,063
<SECURITIES>                                     1,249
<RECEIVABLES>                                    6,341
<ALLOWANCES>                                         0
<INVENTORY>                                      5,408
<CURRENT-ASSETS>                                17,929
<PP&E>                                          65,466
<DEPRECIATION>                                  36,572
<TOTAL-ASSETS>                                  48,872
<CURRENT-LIABILITIES>                            9,445
<BONDS>                                         19,880
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         2,700
<OTHER-SE>                                         190
<TOTAL-LIABILITY-AND-EQUITY>                    48,872
<SALES>                                         18,261
<TOTAL-REVENUES>                                18,261
<CGS>                                           16,426
<TOTAL-COSTS>                                   17,632
<OTHER-EXPENSES>                                 (213)
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 310
<INCOME-PRETAX>                                    532
<INCOME-TAX>                                       180
<INCOME-CONTINUING>                                352
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       352
<EPS-PRIMARY>                                      .18
<EPS-DILUTED>                                      .18