Homespun bunches up when I work with it. Why is that and what can I do to stop it?

The softness in Homespun is achieved by a loose spinning process. Because of this loose spinning, bunching will sometimes occur--more often in knitting then crocheting.

Try holding the yarn you are guiding more loosely; if you hold on to it too tightly, the friction will sometimes cause it to bunch up.

Also sometimes if you rewind the skein and start knitting from the opposite end, the problem will be alleviated.