To find the area of a circle, you can use the formula:
\[ A = \pi r^2 \]
where \( r \) is the radius of the circle. The diameter of the circle is given as 16 yards, so the radius \( r \) is half of the diameter:
\[ r = \frac{16}{2} = 8 \text{ yards} \]
Now, using \( \pi \approx 3.14 \), we can calculate the area:
\[ A = 3.14 \times (8)^2 = 3.14 \times 64 \]
Now calculating \( 3.14 \times 64 \):
\[ A = 3.14 \times 64 = 200.96 \]
Thus, the area of the circle is
\[ \boxed{200.96} \text{ square yards} \]