Interesting, I would love to see a picture, I make rag rugs to, but I cut up the recycled fabric into 1/2" strips and hook my rug in loops. You can design your own patterns or just do scrappy or lines etc. My Mum and her mother both used to do this kind of rug making on a sack backing,using up old wool coats, My method is a little different, I use polo fleece and I use backing which is usually used for hooking wool rugs. That part is expensive but it is easier on my poor old hands.
Gal