If you mean do I remember growing up like that, then yes... although we never had a wooden fence. The fence between us and the neighbors was barbed wire (and grass never stood a chance with us kids).
We got dirty playing but those children in the picture appear to have had getting dirty as the goal. We got dirty by doing fun things, not rubbing ourselves with dirt.
I do not ever remember do that. But I remember my children rolling in mud puddles and slinging mud at one another. They then had to get the water hose and clean up both themselves and anything mud landed on before they could come inside.