In order to assess agricultural areas with natural handicaps, the European Commission proposed a set of biophysical criteria. In this report all criteria were applied to the Dutch agricultural areas. The application of the criteria showed that four criteria led to the delineation of areas with natural handicaps. The handicaps were soil drainage, texture, chemical properties and slope. The criteria for low temperature, heat stress, rooting depth and soil moisture balance were not applicable to the Dutch agricultural soils. All results were aggregated to LAU2 units (municipality). An area at the scale of LAU2 units was considered affected by significant natural handicaps if at least 66% of the Utilised Agricultural Areas met at least one of the biophysical criteria. In total 109 LAU2 units were considered a Less Favoured Area