A method of producing shag pile fabric by forming a series of yarn loops around a looper which is then positioned onto a backing sheet; securing the series of yarn loops to the backing sheet by first stitching them along their center; then cutting one of the row of loops so formed so that the looper with the other row of loops may be moved over to the cut loops and across the stitching; securing with a second line of stitching the other row of loops to the backing sheet; cutting such other row of loops, freeing the looper; and thereafter repeating these steps over the entire backing to form the shag pile fabric.