To calculate the area of a circle, you can use the formula:
\[ \text{Area} = \pi r^2 \]
where \( r \) is the radius of the circle. The radius is half of the diameter.
Given that the diameter of the circle is 16 yards, the radius \( r \) is:
\[ r = \frac{16 \text{ yards}}{2} = 8 \text{ yards} \]
Now, substituting the radius into the area formula using \( \pi \approx 3.14 \):
\[ \text{Area} = 3.14 \times (8 \text{ yards})^2 \]
Calculating \( (8 \text{ yards})^2 \):
\[ (8 \text{ yards})^2 = 64 \text{ square yards} \]
Now substituting back into the area formula:
\[ \text{Area} = 3.14 \times 64 \text{ square yards} \]
Now calculating \( 3.14 \times 64 \):
\[ \text{Area} = 200.96 \text{ square yards} \]
Therefore, the area of the circle is:
\[ \boxed{200.96} \text{ square yards} \]