Tandy has the punches.
You can make a darn good one from a piece of steel tubing that you forge to a rectangle and file to a sharp edge. The steel tubing from Home Depot will harden a bit with a water quench.A piece of 3/8" should be about right.
The way to go if you are going to punch a lot of holes is to make an actual punching die.
Take two pieces of 1/4" mild steel (about 3" square should do) and saw/mill matching slots in them the size of the hole you want to punch ( the ends of the slot can be rounded,that won't matter).Next, Take a piece of 1/2" round tool steel (O-1,HSS, or whatever you can get), and file/grind the end for about 1.5",making it fit the slots in the plates.The end should be a sharp 90 degree edge.Harden the punch and draw a medium temper. Put the punch in the slot of both plates and drill 1/4"guide holes in the four corners.Glue 1/4" rods in the holes on the bottom plate;about 1" long is enough.
To use the die punch ,put the leather piece on the bottom plate,drop the top plate on, give the punch a tap with a rawhide mallet, voila! you have a punched washer that you can make 100s of with the exact same hole.If you put the bottom plate on a base with a 1" hole cut out under the slot the punchings will drop through .You can also make a similar punch setup with a 1.5" round punch to punch out lots of leather discs to punch the slots in ( it is a lot easier to make a round punching die).
If your skills are up to it, and you make all parts of hardenable steel,you can make punching dies that will punch the slots in metal guards. The punch/die setup will have to be beefy (1" round stock, and 1" plates), and used in a hydrauluic press.This project would not be for the amateur, but shows the possibilities)
Stacy