I first saw this type of rug in a design magazine, it was called Hay Pinocchio Rug. It was gorgeous the felt balls were made from brightly coloured wool that made them look like gum balls. I had to have it, but the price tag was ~$1000 Cdn. I've made a few felt balls before so I figured I can make this type of rug myself. Although the process of making this rug was fairly easy, it took a lot of time; first felting the balls then sewing them together. When I check the date of the first process pictures I took, I had started in May 2011, so it took me almost a year to put this together.
I decided against using the bright colours that the Pinocchio Rug had because frankly it wouldn't really match the decor in my apartment. I used mostly shades of brown and white.
We're planning a trip through sheep country.
Some farmer could probably welcome a better price for the raw material.
One caveat, though: not all "natural" fibers will felt. Animal fibers felt when the scales on each hair shaft lock with the scales of its neighbors. But plant-based yarns like cotton and bamboo do not have scales and will not felt.
Also, yarn labelled "superwash" is animal fiber treated to remove the scales so the garment can be machine-washed. By definition, these wools are not supposed to felt.
Just a heads-up :)
Sunshiine