I own an 870 and a 1897 in 16, and I've owned a few others as well. As a farmyard or homestead shotgun, it will do the job.
But, IMHO, the 12 gauge is a better choice. The price and availability of suitable ammunition is the main reason. I've pretty much lived in a rural setting for my whole life, and a Remington Wingmaster with a 28" barrel and full choke is my yard gun. A plain barreled 2 3/4" chambered old school pump.
The only downside to this combo is that it pretty much relies on a supply of lead shot shotshells. 7 1/2 shot isn't an issue, tons of target shells for that. 7 1/2 shot is good for small vermin. Large vermin are best dealt with a load of #2 or #4. Finding #2 shotshells in lead is a bit of a quest, but the good thing is you do not need a lot of them. A case of 7 1/2 will last me 2 years, and a box of #2 is good for several. Add in a box of slugs, which last me years and you are golden. If you are in coyote country, some buckshot may be in order.
I have hunting shotguns, but for yard work, the 870 gets the nod. For one, it will get a bit beat up, the other is that a 2 3/4 plain barrels shotgun is a bit lighter. A 16 ga will do all those jobs, but buying or even reloading ammo for it are a big detractor IMHO.
It is a shame, the 16 ga is a fine shotgun.